Credit card debt defaults up for July - Bills.com News

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Credit card debt defaults up for July

Monday, Aug 17, 2009

Defaults on credit card debts saw a slight upswing during the month of July.

According to reports, Bank of America Corp. saw charge offs go up to 13.82 percent during July, compared to 13.82 percent in June. Charge offs are credit card debts banks no longer expect will be paid off.

Though charge offs were up, the company reported that credit card debt delinquencies did drop during July. Debts payments that were delinquent byat least 30 days were down from 7.73 percent in June to 7.58 percent in July.

Capital One Financial Corp, however, saw an increase in credit card delinquencies for July. Delinquencies were up to 4.83 percent during the month, compared to 4.77 percent
at the end of June.

Like Bank of America, Capital One also saw a rise in charge offs for the month. Charge offs were up from 9.73 percent in June to 9.83 percent in July.

Though banks may be having problems with card holders paying off their credit
card debt, some Americans seem to be pulling themselves away from credit cards. According to a recent report from the Federal Reserve, the amount of revolving debt, a good portion of which is credit card debt, dropped 6.8 percent to $917 billion in June.

Also, make sure to get a free financial health check-up with Bills IQ!
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