Credit card debt remains unchanged in 4Q, TransUnion says
While many lenders and credit card issuers have noted declines in the number of late payments and defaults processed on their networks, a new study finds the national average for credit card debt remains relatively unchanged.
According to a recent report by TransUnion, the national average for borrower debt remained nearly flat in the fourth quarter of 2010, increasing to $4,965, up slightly from the $4,964 observed at the end of the third quarter.
Alaska had the highest rate of borrower debt, with the average resident owing more than $7,000 to credit card lenders, the report said. North Carolina and Tennessee finished second and third in the rankings, respectively. By comparison, Iowa residents held the lowest average debt total.
“From a delinquency perspective, 2010 was an excellent year for consumers as they showed continuing fiscal responsibility in working to pay down their credit card debt,” said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit.
Overall, the report found that despite retail spending increases during the holiday season, consumer credit card balances remained relatively unchanged.