Late credit card debt accounts expected to decline in 2010
However, a recent report from TransUnion indicates that 2010 will be at least slightly better when it comes to people not being able to pay down their credit card debt. The financial services firm indicates that the number of credit card accounts that are more than 90 days late should fall by 2.8 percent next year when compared to 2009.
Ezra Becker, director of consulting and strategy for the firm, said that the drop next year would mark the third straight year delinquencies have fallen. However, the 2.8 percent drop would mark the smallest decline in that time, meaning some consumers may have hit their limit when it comes to being able to pay down credit card debt
“It will be interesting to see how the CARD Act, primarily taking effect in February 2010, will impact both consumer and lenders,” Becker said.
A number of provisions are set to take effect in February 2010 include limiting card issuers’ ability to raise interest rates arbitrarily. As a result, many lenders have been switching their customers’ accounts to a variable rate.