Consumer Debt Slightly Down

Consumers and credit holders have been widely bogged down by debt for years.  With many consumers “waking up” to the error of their ways after the recent recession, some have undoubtedly become more responsible with credit card use and borrowing.  While some reports maintain that consumer behavior hasn’t showed signs of changing much for the long term, a recent report released by the credit card division of JPMorgan Chase & Co. alludes to a glimmer of hope for many consumers who once put themselves in debt accumulating situations.

 The recent report states that the rate at which Chase wrote off credit card balances it could not collect (bad debts) was the lowest of the year in October.  The charge-off rate feel from 7 percent from last months, 7.78 percent. Chase also reported that, after the numbers were “tallied up” for October, they also revealed that the rate of which its customers were falling behind on their payments was at a yearly low as well.  Chase’s rate of payments late by 30 days or more dropped from last month’s 3.82 percent to 3.81 percent, down from it’s to out last December at 4.94 percent. 

 Although the trends reported by Chase seem promising, it is important to remember some experts remain skeptical as to whether long term credit holder behavior will be changed.  Others point out that the downward trend reflects a movement toward lower overall credit card debt nationwide.  

The Federal Reserve has reported that the total revolving balances for consumer credit, which remains mainly credit cards, dropped between September and October down to the lowest rates since the end of 2005.  A combination of factors such as consumers vigilantly reducing balances and credit card companies cutting customer’s credit lines are expected to have contributed to the recent downward consumer debt trend.  

While this is good news for many, with unemployment still high and mortgage and credit regulations getting tighter every day, many individuals will continue to require the help of a credit repair specialist in order to ensure a good credit score.  Ever after debts are paid down, credit scores could still remain affected, needing some repair.  Credit repair specialists are trained in helping to repair the bad credit that results from the overwhelming debt many consumers still continue to face, or have faced in the past.