Debt and delinquencies down on credit cards during first quarter
Credit card delinquencies may have eluded seasonal influences during the first quarter of 2010, according to a recent report by TransUnion.
The ratio of borrowers with accounts 90 or more days delinquent fell to 1.11 percent, which is 8.3 percent lower than the previous quarter. Nevada maintained the No. 1 spot for the most credit card delinquencies, followed by Florida and Arizona. North Dakota, South Dakota and Alaska had the lowest delinquency rates.
This also represents the fourth consecutive quarter of decline in credit card debt, according to the report. Despite having a low delinquency rate, Alaska held the top spot for credit card debt, with an average of $7,135. Iowa residents had the lowest average credit card debt, at $3,872.
“The last four quarters of consecutive decreases in credit card balances shows that consumers continue to focus on paying down their credit cards in response to economic uncertainty and the continued somewhat anemic employment outlook, wanting to keep a credit cushion available for hard times,” Ezra Becker, director of consulting and strategy at TransUnion, said.
The national unemployment rate recently shifted upward to 9.9 percent, after three months of stability.
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