Capital One writes off less credit card debt in June

In a sign that consumers may be getting a better handle on paying their bills, one company reported fewer charge offs and delinquencies on credit card debt for June.

Capital One said in a Securities Exchange Commission filing that it had to write off fewer seriously delinquent balances as being uncollectable in June than it did in May. The company’s charge offs for U.S. credit card holders amounted to $422.5 million, or 9.3 percent of all accounts. This marked a slight decrease from May, when writeoffs reached $436.2 million, or 9.5 percent.

The company reported a very small drop in delinquencies last month as well. Payments that were at least 30 days late fell to 4.79 percent in June from 4.8 percent the prior month. That’s the lowest rate the company has reported this year.

Often, credit card lenders can report lower delinquency rates by writing off a large amount of credit card debt that is at least 180 days behind as being irretrievable. However, if both charge offs and delinquencies decline, it could signal a positive sign for consumers.