Fewer consumers are paying their credit card bills late, and balances across the nation are shrinking.
The national credit card delinquency rate decreased in the first quarter and credit card debt declined for the fourth consecutive quarter, according to trend data from TransUnion. The ratio of borrowers that were at least 90 days behind with their credit card payments slid to 1.1 percent, a 8.3 percent drop from the previous quarter.
"Based on revised economic assumptions, which are now more optimistic than before, TransUnion believes that the 90-day credit card delinquency rate, apart from seasonal ups and downs, will likely continue to decrease in 2010, possibly dropping below 1 percent by year end," Ezra Becker, director of consulting and strategy in TransUnion's financial services business unit, stated in a press release.
Average total credit card debt owed per borrower fell 4.95 percent from the previous quarter to $5,165, and 10.57 percent year over year.
Only two states saw an increase in credit card delinquencies -- Arkansas and Alaska -- and overall, Nevada, Florida and Arizona had the highest delinquency rate. North Dakota, South Dakota and Alaska had the lowest incidence of delinquencies.
Zero states showed an uptick in average credit card debt. Alaska had the highest state average at $7,135, and Tennessee and Alabama followed closely behind. At the other end of the spectrum, Iowa owed the least on credit cards, at $3,872, and North Dakota and South Dakota followed with the next lowest state averages.
How does your debt total compare with the rest of America? Use our pay-down calculator to figure out how long it will take to eliminate your debt.
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