Credit card debt declines, lenders say
Capital One, the Virginia-based financial lender, reports charge offs and delinquencies declined in October, signaling that many consumers are paying off credit card debt.
The overall rate of charge offs, debts the lender believes will go uncollected, fell from 8.38 percent in September to 7.26 percent in October. That number also decreased among the credit card company’s international numbers, which dropped from 7.31 to 6.94 percent.
In the company’s U.S. credit business, one-month delinquencies, a sign that consumers are avoiding bills, also decreased, though at a lower rate, Nasdaq reports. The numbers fell slightly from 4.53 percent to 4.45 percent.
Bank of America released similar falling late payments. The North Carolina-based bank found delinquencies falling from 5.71 percent in September to 5.6 percent in October, according to a separate CNBC report.
The decline is due to a number of factors, including consumers reduction of debt, credit companies cutting credit lines, and the high number of charge offs, CNBC says.
The U.S. Commerce Department provided more positive news for the economy on Monday when it reported growth in sales at retailers rose higher than was expected.