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While charge offs decline, others may consider debt management plan for credit card problems
By Edith Barlow on Feb 16th, 2010
Late credit card debt payment is an issue that many Americans are trying to eliminate, and a recent filing from Bank of America shows that its customers may be having a better time of it.
According to the company, the charge off rate for credit card accounts fell from 13.53 percent in December to 13.25 percent in January. Charge offs in this case are credit card debts the company feels it will not receive payment on.
And, in a sign that future charges offs may decline, Bank of America also said that accounts that are delinquent for more than 30 days dropped from 7.44 percent in December to 7.35 percent last month.
A recent report from the Federal Reserve Board shows that many Americans are trying pay off debt on credit cards. Revolving credit, most of which is accounted for by credit card debt, declined at an annual rate of 11.7 percent in December, despite the holiday season.
However, there are still some consumers who are having trouble with trying to pay off debt. Those consumers may consider a debt management plan from a counseling service. A debt management plan may give people the ability to pay off some debts at lower rates.
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