Consumers cut credit card debt again in November

Credit ratings company, Moody’s Investors Service, announced last week that the charge-off rate on Americans’ credit card debt declined industrywide for the fourth consecutive month.

Charge offs – credit debt that is believed to be uncollectable by lenders – fell to 8.58 percent in November, down from 8.79 in October and almost 19 percent below levels from 2009.

In addition, the overall number of charge offs declined almost 3 percent from its peak of 11.5 percent in August 2009, according to the latest statistics, Dow Jones Newswires reports.

The rate at which consumers were making late payments on these bills also declined across a number of sectors. Delinquencies of more than 30 days late fell for the 13th straight month to 4.51 percent, reaching their lowest level in almost three years.

Early-state late payments – those up to 59 days delinquent – also fell by 5 percentage points during this time, according to the news source. The numbers coincided with the company’s predictions for the month when Moody’s said charge offs would continue to fall over the next year.

The announcement continues a steady decline for late payments, which have been decreasing since the end of the recession.

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