Charge card delinquency and debt dropped in 2010

Fewer charge card delinquencies are being documented, and the level of credit card debt is declining also. Recent data from credit bureau TransUnion indicates more individuals are paying their cards off. More people are applying for cards, as more are also being issued. Dropping delinquencies indicate several individuals are paying down holiday purchasing sprees.

Consumers get out of debt in 2010

During the last three months of 2010, the number of delinquencies for charge cards declined considerably, according to ABC. Credit rating bureau TransUnion released a report that indicated charge card delinquencies fell to just 0.82 percent in the last three months of 2010, in contrast to 1.21 percent in the last three months of 2009. The 3rd quarter of 2010 had a delinquency rate of 0.83 percent. Usually during the holidays the number of delinquencies goes up drastically; however, it seems that this year more people preferred to stay out of debt than to buy lots of presents.

Balances are ever changing

The credit card national average balance has changed also. It went down a bit. For the last three months of 2010, there was a decrease to $4,965 for the average balance on major cardholders including Visa, MasterCard, Discover and American Express which is a drop from the period in 2009 of 8.6 percent. In 33 states, the balance went up really. There were highest balances in three places. These were Washington D.C., Iowa and Mississippi.

Lots of new cards

There have been a lot more cards issued recently even though credit card businesses have complained the CARD Act makes business terrible. In 2010's last quarter, there was a huge increase in the number of credit cards issued. The 19.1 percent increase goes against what credit card corporations say. That was the first time since 2007 the number of newly issued charge cards rose for two consecutive quarters.

Articles cited

ABC News

abcnews.go.com/Business/wireStory?id=12968324&page=1

Washington Post

washingtonpost.com/wp-dyn/content/article/2011/02/23/AR2011022306978.html