Today’s Associated Press article reported that the amount consumers owed on their credit cards fell to its lowest level in eight years. According to TransUnion, the average combined debt for bank-issued credit cards — either with a MasterCard or Visa logo — was $4,951 in the second quarter of this year, down 13% from $5,719 last year. TransUnion said it was the fist time credit card debt fell below $5,000 since Q1 2002.
In addition, the number of cardholders past due by 90 days or more fell to 0.92% in Q2 2010, down from 1.17% last year. The numbers show that, despite the economy, borrowers are making a conscious effort to pay off their balances and keep their credit cards in good standing.
Those who continue to pay down their debt will see some benefits, such as a higher credit score, a better chance to receive a home loan at a reduced rate and lowering their credit risk. It is good to see today’s consumers looking to reduce their debt. Now, if we could only get the government to do the same thing.
Recent Comments