Consumers cut deeper into their credit card debt in July
Given the reports from major credit card lenders in the last few months, it seems Americans are more and more frequently putting their money toward paying down their credit card debt.
According to a report from the Associated Press, a majority of the nation’s major credit lenders reported a decline in both delinquencies (payments that are more than 30 days late) and charge offs (those that have been delinquent for so long that the companies officially consider them uncollectable and remove them from their ledgers) in July. Among those that reported drops were Discover Financial Services, Capital One Financial, JPMorgan Chase and Bank of America.
The report said that Capital One saw the most improvement in its charge-off rate of any credit card company. The company said that its charge offs dropped considerably, to just 8.1 percent in July from 9.3 percent in June.
Many Americans have been able to make more payments in recent months because consumer spending figures show they have tended to cut back on purchases with their credit cards.