Creditnet News Story
TransUnion forecasts drop in credit card delinquencies
Tuesday, December 8, 2009
By Sam Lee
Rate should fall for third straight year in 2010.
An improvement in credit markets could lead to more credit card offers from companies, and a recent report indicates the future looks a bit brighter for the industry.
The forecast from TransUnion indicates that the end of 2010 will see a decline in credit card delinquencies. According to the firm, delinquencies should drop from 1.07 to 1.04 percent by the end of next year.
"We anticipate that credit card delinquencies will decrease for the third straight year as consumers continue to keep incremental debt to a minimum and aggressively manage debt repayment," Ezra Becker, director of consulting and strategy for TransUnion's financial services group, said.
Becker said that the expected year-to-year decline at the end of 2010 will be smaller than drops seen in past years. For example, delinquencies went down 11 percent when comparing 2007 with 2008 and also fell 11.6 percent from 2008 to 2009.
Recent numbers from the Federal Reserve support Becker's contention that consumers are focusing on paying off their debts. Revolving consumer credit - which is mostly credit card debt - dropped by an annual rate of 9.3 percent in October.
| 
Subscribe | |
