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Debt consolidation may be one solution for consumers as credit card defaults increase
12/30/2009
More people may be having problems with credit card debt according to a recent report from Moody's Investors Services.
For November, the number of credit card delinquencies of more than 30 days increased from 6.1 percent in October to 6.2 percent in November. The firm noted that it expects delinquencies to continue to rise through the winter, which could lead to an increase in credit card defaults.
Charge offs, which are accounts that card companies have written off, also increased in November. After posting a 10.04 percent rate in October, defaults rose to 10.56 in the next month. Moody's reported that it expects charge offs to reach a high point toward the middle of next year, when rates could reach from 12 to 13 percent.
With defaults and delinquencies on the rise, many consumers may wonder what they can do in order to improve their ability to handle credit card debt. One thing they may consider is debt consolidation, which may provide people with lower interest rates than they currently have on their card accounts.
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