Major lenders say more credit card debt was paid off in June
Americans did a better job of keeping up with their credit card debt in June, as both delinquencies and write offs declined for five of the six major lenders.
An Associated Press report said that every one of the country’s top lenders save for Citi, the second-biggest, reported that the rate at which they wrote off credit card debt as uncollectable and late payments dropped. Capital One Financial Corp. had the best month of all the card giants, which also include JPMorgan Chase, Discover, Bank of America and American Express.
One economic analyst told Reuters that delinquency rates are usually lower in the spring when people still have some of their tax refund money left over, and that he wouldn’t be surprised to see delinquencies increase again in the near future.
The Reuters report also noted that credit card lenders will see a significant reduction in their profits after August because that’s when financial reform laws dictate they must reduce late fees. Credit card companies often rely on these fees to drive revenues.