Debt Relief Industry Forecasts and Trends

Credit Card Charge Off Rates Continue to Fall

Story out in Collections & Credit Risk is reporting the average consumer credit card default rate has continued it;s decline for most large issuers in May, according to Moody’s Investors Services.

All of the top six credit card issuers except JPMorgan Chase & Co. on June 15 reported fewer accounts deemed uncollectible during May, and Chase’s increase was so slight it is insignificant to the broader trend of credit improvement, Jeffrey Hibbs, a Moody’s analyst, told PaymentsSource in an interview.

“The average credit card charge-off rate will fall below 7% for this reporting period if not the next as we continue to see the results of issuers removing weaker borrowers from their portfolios following the recession,” Hibbs said.

The average charge-off rate for consumer cards in April was 7.16%, down 19 basis points from 7.35% in March.

If present trends continue, charge-off rates will fall to 4% by the end of 2012, well below historic rates of about 6%, Moody’s predicted.

Charge-off rates that low spell trouble for debt relief companies since it is an indicator about demand.

Read Article


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

I can always use your help. If you have a tip or information you want to share, you can get it to me confidentially if you click here.

READ  Debt Relief Industry Recovery Postponed Again. Consumer Confidence, Sucks!

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

Leave a Comment

Scroll to Top