Delinquencies and debts dropped in 2010 for credit cards

Average debt amounts and delinquencies on credit cards have been declining for months. The number of cards being issued is increasing in addition to more people paying their cards off, in a recent report by TransUnion, one of the three credit rating bureaus. Typically, delinquencies shoot up after drudging the winter holidays.

2010 the year of debt relief for several consumers

ABC reports that during the last few months of 2010, there has been a huge decrease in the number of charge card delinquencies. A report came out from TransUnion, a credit score bureau, which showed a drop to 0.82 percent for charge card delinquencies was shown for the last three months in 2010 while in 2009, and the last three months had a 1.21 percent rate. The low delinquency rate was reflected in 2010's 3rd quarter. It was at 0.82 percent. Presents didn't seem to be the focus this holiday season when the number of delinquencies usually rises. More individuals were interested in getting their debt figured out.

Rollercoaster account balances

The charge card national average balance has changed also. It went down a bit. The combined average balance for all major cardholders — all people that hold a Visa, MasterCard, Discover or American Express — dropped to $4,965 for the last three months of 2010, which is a reduction of 8.6 percent from the exact same period in 2009. However, in accordance with the Washington Post, the average balance rose in 33 states. There were highest balances in three places. These were Washington D.C., Iowa and Mississippi.

new cards being passed out

Despite recent caterwauling from charge card companies that their businesses can be hampered and lose lots of advance money due to the CARD Act, new cards are being issued at a considerable pace. The last quarter of 2010 had the number of new charge cards rise by 19.1 percent. The number of credit cards went up for 2 quarters in a row for the first time since 2007.

Information from

ABC News

abcnews.go.com/Business/wireStory?id=12968324&page=1

Washington Post

washingtonpost.com/wp-dyn/content/article/2011/02/23/AR2011022306978.html