JPMorgan Chase, the largest credit card lender in the country, recently said it saw the rate at which it had to charge off seriously delinquent credit card debt – accounts 180 or more days behind – as being uncollectable rose to 6.21 percent in February, from 5.97 percent in the previous month, according to a report from The Associated Press. That increase came despite three straight months of drops.
However, the company also revealed that it saw 30-day delinquencies dip to 3.29 percent from 3.39 percent in January, the report said. This was the lowest rate observed by the lender since September 2008.
Many experts are at odds over what has led to lower charge offs in recent months, as some say the decrease indicates more conscientious bill payment by consumers, while others contend that many troubled borrowers can no longer obtain new lines of credit.