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Some may consider consumer credit counseling in the face of increased credit card debt delinquencies and defaults
01/08/2010
Challenges paying off credit card debt may be one reason consumers find themselves in financial hot water, and more people may find themselves falling into the pot.
Charge offs, which are credit card debts lenders no longer expect to be repaid, increased from 10.09 percent in October to 10.68 percent at the end of November, according to a recent report from Fitch Ratings.
The firm also noted that delinquencies on card accounts also hit a new high watermark of 4.54 percent in November, moving past June 2009's record of 4.45 percent.
"U.S. consumer credit quality remains under considerable stress due to persistently weak labor market conditions," Michael Dean, managing director with Fitch Ratings, said.
Delinquencies and default rates on credit cards aren't the only results of high unemployment as consumers struggle to pay off debt. Joblessness is making it difficult for people to pay down mortgages while also forcing them to consider serious cuts in their budgets.
Such measures may be difficult for some, though there are organizations people can turn to for help. For example, consumers may consider relying on the resources available at a consumer credit counseling agency, which can help them map out a spending plan.
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