Stats point to signs of improvement in U.S. credit card debt

Credit card debt is still a heavy burden for many people throughout New Jersey, but there are signs that consumers in general are getting their card spending under control. Let’s look at some of the recent numbers gathered by credit reporter TransUnion.

According to the agency, card users are understandably being more careful than they were before the most recent recession. In fact, the numbers show the late-payment rate has dipped to its lowest level since 1994.

In particular, the rate of payments that are 90 or more days past due sank to 0.57 percent. That is good news, given the average rate of 1.03 percent reported by TransUnion, which has been collecting data since 1992.

The Federal Reserve also reports that since July 2008, when credit card debt reached its peak, Americans’ total card debt has dropped 16.5 percent.

Per credit card user, the average debt was $4,965 in this year’s second quarter, and interestingly, in the first quarter of the year, there was an increase in the number of newly opened card accounts.

These numbers suggests that many consumers are being more cautious about their credit card use, and a gradually improving employment rate is likely making consumers more confident.

For people whose credit card debt is still out of control, there may be relief options. Credit card debt, combined with medical or mortgage debt, can seem like an insurmountable challenge. But there are ways of using credit cards to build credit rather than destroy it.

New Jersey residents who want to learn more about credit cards and debt relief are encouraged to visit our Cherry Hill bankruptcy site.

Source: northjersey.com, “Average credit card debt per borrower dips in 2Q,” Aug. 13, 2013

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Attorney Joel R. Spivack is an experienced bankruptcy and residential real estate transactions lawyer in Cherry Hill, New Jersey. Clients come to us for legal services, but what we really provide is peace of mind. For more than 30 years, Attorney Spivack has helped people make wise, informed decisions about bankruptcy filings, debt relief options and residential real estate transactions.
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