Charge offs increase industry-wide
The number of seriously delinquent credit card accounts nationwide rose very slightly in July, creeping up even as early-stage delinquencies continued to decline.
Moody’s Investors Service recently announced the total amount of credit card accounts nationwide that were so far behind on payments they were written off by lenders as being uncollectable increased during the month of July, rising to a rate of 6.09 percent of all balances, according to a report from the Wall Street Journal. That’s up from 6.04 percent in June.
Meanwhile, the number of accounts that fell behind for the first time slipped for the 21st consecutive month, dropping to 3.09 percent, the report said. That figure is also less than half of the total number observed a few months after the beginning of the recession.
Declines in the nationwide delinquency rate are often reflected several months down the line in the form of fewer charge offs. This means that while some consumers are currently struggling to pay their bills on time, a larger number may be soon be in a position to do in the near future.