Issuers report delinquency rate drop as consumers reduce debt
As Americans work on paying off their credit card debt and rebuilding their savings, issuers are reporting a drop in delinquency rates again for the month of July. American Express, Bank of America, Capital One, Discover and Citigroup have all announced a decrease in charge offs as more card holders seem to be adopting better money management skills.
The Street, a financial news website, says that the industry outlook is bright as new statistics show that Americans have been reducing their overall household debt. Rochdale Securities market analyst Richard Bove says that he believes the Credit Card Accountability, Responsibility and Disclosure Act has also played a role in the upswing the industry is currently seeing. Now that consumers have more protection from issuers, they may become more inclined to trust the credit card market once again.
Those who are still struggling with debt and looking to boost their credit scores should make payments in a timely manner. Failing to pay bills on time can result in accruing debt due to interest rates and penalty fees.