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While number of delinquent accounts dropped, debt consolidation can help those having hard time making payments
By Peggy Stillwell on May 1st, 2010
A recent report indicates that some consumers are managing to deal with their credit card debt.
According to Fitch Ratings, delinquency levels on U.S. credit accounts dropped during March's payment period. For example, early-stage delinquencies dropped to 5.74 percent of card accounts, a decline of 0.11 percentage points. The percentage of cards that are 60 days late on payment also fell to 4.27 percent.
As delinquencies dropped, so did the number of accounts that credit card companies had to write off. Defaults dropped to 10.93 percent of accounts, though that still represents a higher level than the average charge off rate during the previous 12 months.
"Defaults and delinquencies will exhibit some seasonal improvement but remain elevated in the coming months primarily due to the strained labor markets," Fitch Ratings managing director Michael Dean said.
While charge offs and delinquencies dropped, there are still those people who are having a hard time paying off their credit card bills. One option these consumers may consider is debt consolidation, which can knock down interest rates and cut back the amount of time it takes to pay off accounts.
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