While defaults drop, a debt management plan may help those still facing credit card trouble

By Edith Barlow on Jun 24th, 2010

A recent report from Moody's Investors Service showed that even more people may have had a better time paying off credit card debt.

According to the ratings agency, defaults on credit cards saw their second straight decline during May. Of all accounts, 10.71 percent were charged off, which marked a .20 percentage point decline from April.

"The two-month decline is a clear break from the rise in charge-off rates experienced during the first quarter of the 2010," Moody's said in a release.

While charge offs declined, so did delinquencies, which can often act as a future indicator of defaults. Moody's said that the number of accounts with late payments fell to 5.26 percent, the lowest level seen since November 2008.

Still, some consumers may find it difficult to pay down what they owe on their credit cards, which could lead them to seek other options. One they may consider is a debt management plan offered by a counseling agency, which can lead to reduced monthly payments.

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