Instances of delinquency on credit cards issued by major banks across the country fell to 3.28 percent in the final three months of 2010, according to the latest quarterly statistics from the American Bankers Association. This was the lowest rate observed since the first quarter of 2011, and down from the 3.64 percent observed at the end of the previous three-month period in 2010.
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“Consumers are clearly showing better control at managing their debt even while increasing their borrowing, especially in auto loans and student loans,” said ABA chief economist James Chessen. “At the same time, household wealth is up, hiring is up and unemployment is down. When people have jobs, they can spend more and pay their bills on time.”
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The latest rate was also considerably below the 15-year average for bank-issued credit card delinquencies, which currently stands at 3.92 percent, the report said.
Recently, many consumers have been paying their credit card bills more conscientiously every month, but some have also done so while not paying down their home loan.