Credit Card Late Payments Hit 17-Year Low in 2Q
News from ABC News:

Credit card users are so focused on keeping their accounts in good standing that they’ve driven the rate of late payments down to its lowest level in 17 years.

The national credit card delinquency rate, or rate of payments 90 days or more past due, fell to 0.60 percent in the second quarter, down from 0.92 percent a year ago. That’s the lowest rate since 1994, according to credit reporting agency TransUnion.

Delinquencies were expected to drop, but the improvement in that April to June period was faster than forecast.

And the improved payment habits came despite increased use of credit cards, based on quarterly data reported by banks that issue Visa and Mastercard-branded cards and data from American Express Co. and Discover Financial Corp.

TransUnion also saw higher card use, reflected in a slight uptick in the amount of debt card users carried during the quarter. The average combined total debt for all major credit cards increased by $ 20 from the first …………… continues on ABC News
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New York Fed consumer credit study finds signs of ‘healing’
News from NorthJersey.com:

Consumers’ willingness to use plastic may again be on the rise, a new government report suggests.

The Federal Reserve Bank of New York’s household debt study for April, May and June showed that credit card limits increased by $ 60 billion or about 2 percent in that time, marking the second straight quarterly increase.

The number of open credit card accounts rose by 10 million, to 389 million.

The study based on Equifax credit report data showed “continued signs of healing” in credit markets and “a modest increase in the willingness of consumers to borrow and banks to lend,” the federal agency said.

Researcher Andrew Haughwout said in a statement that the statistics provided “more evidence that the pace of consumer deleveraging that began in late 2008 has slowed.”

Overall, consumer debt was little changed from the end of the first quarter as balances on mortgages and home equity loans fell by 0.2 percent and 3 percent, respectively.

Delinquen…………… continues on NorthJersey.com
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