Creditnet News Story
Late credit card payments on the decline
Friday, June 25, 2010
By William Davis
May marks the second consecutive month more people made on-time credit card payments, according to Moody's Investors Service Credit Card Indices Report.
Late payment and charge off rates continued their downward trend in May, according to Moody's Investors Service Credit Card Indices Report.
The amount of uncollectable credit card debt fell to a rate of 5.26 percent last month, the lowest it's been since 2008, the report found. The delinquency rate of consumers who fell 30 to 59 days behind on their credit card payments is 1.26 percent, a near-record low.
The report reveals other indicators that things are improving for consumers.
"The yield index rebounded in May, increasing 50 basis points to 22.89 percent," according to the report. "Trust yields remain at historically elevated levels due to issuers employing principal discounting but also, increasingly, from improvement in organic yields as a result of re-pricing initiatives on the part of card issuers."
The improvement consumers are making towards paying their credit card bills on time may be linked to new rules imposed by the government. Under the new laws, payment due dates must remain consistent each month, making it easier for consumers to keep track of when their bills are due.
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