Recent numbers from Moody’s Investors Services show that some people may still be having problems with paying off their credit carddebt.
A report from the firm shows that delinquencies on credit cards that amounted to at least 30 days late came in at 6.12 percent during October, increasing from the 5.97 percent seen in September. The delinquency rate reported by the firm increased for the third straight month, which indicates more credit card debt defaults may be on the horizon.
Regarding defaults for October, credit card charge offs actually saw a decline. Charge offs – credit card debts lenders don’t expect will be settled – fell from 10.72 percent in September to 10.04 percent in October. Given the report’s increase in the number of delinquencies, it is no wonder that Moody’s expects credit card charge offs could peak at 13 percent during 2010.
Though some people are having difficulty paying their credit card debt off on time, the most recent numbers from the Federal Reserve show that consumers continue to drop the amount they owe on credit cards. According to the Fed, revolving consumer credit decreased 13.3 percent in September.
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