According to the statistics gathered by the American Bankers Association, the current 2.47 percent credit card delinquency is significantly lower than the 3.87 percent national estimated average for a 15-year period. Similarly, it is lower than the ABA’s recorded 2.75 percent delinquent payments during the fourth quarter of 2012 or equal to .28 percent difference.
Consumers Winning over Credit Card Debts
ABA chief economist James Chessen reports that starting last year, the number of credit card delinquencies have started decreasing.. The economy expert says that this is a positive implication that consumers are trying to win over debts.
Chessen further explains in his statement that consumers are trying to carefully manage their finances in order to take better control of their debts and establish a stronger financial foundation.
However, the decline can also be attributed to the measures that banks impose. Credit-card issuers are now more meticulous than before in order to ensure that they only issue cards to those who have established the financial ability to pay their dues back.
Delinquencies in Loans and Mortgages also Decline
Although bad credit loans surged, delinquencies on these loans, especially those connected to the housing sector, dropped. Home-equity lines of credit, home-equity loans and property improvement loans have also declined. However, Chessen explains this event can’t be considered yet as another sign of a flourishing housing market. This is because there are some other loan sectors that do not enjoy such reduction.
However, the report also reveals that delinquencies on boat and mobile home loans have gone up. Similarly, there was another report from the New York Federal Reserve Board saying that delinquencies on student loans surged to 11.7 percent in the last quarter of 2012 from the 8.69 percent in the first quarter of 2012. These figures were released in February.
Americans will Strive to Keep Up with Credit Card Payments
Industry experts say that the economy is quite unpredictable. Even if consumers continue to struggle to build a healthier financial state, there may be financial trials that would hinder them from meeting their debt obligations. But experts believe that consumers now have better chances of overcoming these trials. Among the hurdles that consumers have to expect are the increasing healthcare costs and the dropping of disposable income. Businesses will also be facing some regulatory costs within the year.