CHICAGO – Just days after data was released showing Americans’ overall mortgage debt is at its lowest level in five years, new data also shows U.S. credit card delinquency rates are at their lowest levels in 17 years.
TransUnion, which is projecting the decline will extend into next year as consumers continue to make on-time payments and maintain relatively low account balances, said the average bankcard delinquency rate on accounts at least 90 days past due will fall approximately five more basis points to 0.69% of all credit card accounts by the fourth quarter of next year from the present level of 0.74%. The average U.S. credit card delinquency rate stood at 0.82% a year ago, TransUnion says.
Average credit card debt per borrower during the third quarter this year stood at $4,762, approximately $1,000 less than the average a year earlier, TransUnion data shows. TransUnion also said it expects cardholders to continue to put a higher priority on paying monthly credit card bills over auto and mortgage loans, a trend that began in early 2008.
TransUnion noted that part of the reason consumers are carrying less debt – and reducing their risk of becoming delinquent on accounts – is many issuers cut credit lines and tightened underwriting requirements during the recession to stem massive losses.
