The recession has taken a toll on many individuals and families in Alabama and across the U.S. With high unemployment, slow job growth and consumers carrying a large amount of debt, it has been a difficult road for many. Things seem to be looking up a bit, and the decreased credit card delinquency rate is a sign of this.
The national credit card delinquency rate rose during the last six months of 2011. According to a recent report, that rate has decreased. In the first quarter ending March 31, the rate of borrowers 90 or more days past due on payments dropped to 0.73 percent from 0.78 percent in the previous quarter. According to TransUnion's Trend Data report the current levels are well below historical norms.
On the decreased delinquency rate the vice president of research and consulting in TransUnion's financial services business unit said, "After two consecutive quarters of increases in both the delinquency rate and average debt, it is encouraging to see a return to declines in delinquency. This contributed positively to a general trend since the bottom of the recession, which saw delinquency rates remain at near-record lows."
Despite the positive news, many people are still struggling with credit card debt that can mount over time with regular or out-of-control spending. If you are delinquent on payments, Chapter 7 bankruptcy may be an option. Chapter 7 allows debtors to discharge credit card debts while working toward a fresh financial start. You may want to speak with an experienced bankruptcy attorney to determine whether or not you qualify.
Source: Collections & Credit Risk, "Credit Card Delinquency Rate Drops After Two Straight Quarterly Increases," Darren Waggoner, May 16, 2012