Average credit card debt per borrower dips in 2Q - 21 News Now, More Local News for Youngstown, Ohio -

Average credit card debt per borrower dips in 2Q

Posted: Updated:

LOS ANGELES (AP) - Americans remain stingy about carrying credit card balances and are making more of an effort to make timely payments, trends that have helped whittle the rate of late payments on credit cards down to the lowest level in nearly 20 years.

The rate of credit card payments at least 90 days overdue fell in the second quarter to 0.57 percent. That's the lowest level since 1994, credit reporting agency TransUnion said Tuesday.

The April-June card delinquency rate declined from 0.63 percent in the same period last year, and also was down from 0.69 percent in the first three months of the year.

The latest late-payment rate is the second-lowest recorded by TransUnion since the second quarter of 1994, when the rate was 0.56 percent, and it's running ahead of the historical average of 1.03 percent. The firm's records go back to 1992.

Many Americans remain reluctant to take on high-interest credit card debt after taking steps to increase savings and pay down balances during the Great Recession.

Americans' credit card debt dropped $2.7 billion in June and remains 16.5 percent below its July 2008 peak, according to the Federal Reserve.

Nearly four years after the recession, the U.S. economy and job market are far from fully recovered, though they are making steady progress.

On average, employers have added 192,000 new jobs a month so far this year. And the unemployment rate fell to a 4 1/2-year low of 7.4 percent last month, down from 7.6 percent in June. That's still well above the 5 to 6 percent rate associated with a normal economy.

The slow-growth economy, rising home values and a high-flying stock market have helped boost consumer confidence this year, but many Americans remain cautious with their credit.

"The data supports that consumers will continue to prioritize their credit card relationships over other credit obligations, and delinquencies should remain low into the near future," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit.

Average credit card debt per borrower slipped to $4,965 in the second quarter from $4,971 in the same period last year, TransUnion said. Card debt rose from $4,875 in the first quarter.

Meanwhile, the number of new credit card accounts opened by consumers increased in the first three months of the year.

The data lags by a quarter, so the latest TransUnion figures cover the January-March period. They show that the number of new credit card accounts rose 5.6 percent from the same period in 2012.

The share of cards issued to borrowers with less-than-perfect credit was essentially flat at 27.3 percent versus 27.4 percent a year earlier. That's still well below the roughly 45 percent share of cards going to non-prime borrowers before the recession, however.

In the VantageScore credit rating scale, consumers with a score lower than 700 on a scale of 501-990 are considered non-prime borrowers.

Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

  • More From wfmj.comMore>>

  • Toledo zoo welcomes 100-year-old tortoise

    Toledo zoo welcomes 100-year-old tortoise

    Thursday, August 28 2014 8:11 AM EDT2014-08-28 12:11:09 GMT
    TOLEDO, Ohio (AP) - The newest resident of the Toledo Zoo is a 100-year-old dome-shelled Galapagos tortoise that weighs in at 440 pounds. The tortoise, named Emerson, arrived at the zoo Wednesday night from the San Diego Zoo. He was escorted by Toledo Zoo personnel on his flight to Detroit before being driven to Toledo and uncrated inside a heated shed. Handlers welcomed him with carrot and sweet potato treats and a neck rub. The (Toledo) Blade reports Emerson is the zoo's first Galapagos to...More >>
    TOLEDO, Ohio (AP) - The newest resident of the Toledo Zoo is a 100-year-old dome-shelled Galapagos tortoise that weighs in at 440 pounds. The tortoise, named Emerson, arrived at the zoo Wednesday night from the San Diego Zoo. He was escorted by Toledo Zoo personnel on his flight to Detroit before being driven to Toledo and uncrated inside a heated shed. Handlers welcomed him with carrot and sweet potato treats and a neck rub. The (Toledo) Blade reports Emerson is the zoo's first Galapagos to...More >>
  • Ohio serial rapist gets 135 years in prison

    Ohio serial rapist gets 135 years in prison

    Thursday, August 28 2014 8:10 AM EDT2014-08-28 12:10:21 GMT
    CLEVELAND (AP) - A man who was linked to seven Cleveland-area rapes when authorities reopened hundreds of previously unsolved rape cases has been sentenced to up to 135 years in prison. The sentence by a judge in Cuyahoga County on Wednesday means 69-year-old Robert Green likely will never get out of prison. He was indicted in five of the cases in November and two more in May. He pleaded guilty. The (Cleveland) Plain Dealer reports that the rapes occurred over nearly a decade. They were unso...More >>
    CLEVELAND (AP) - A man who was linked to seven Cleveland-area rapes when authorities reopened hundreds of previously unsolved rape cases has been sentenced to up to 135 years in prison. The sentence by a judge in Cuyahoga County on Wednesday means 69-year-old Robert Green likely will never get out of prison. He was indicted in five of the cases in November and two more in May. He pleaded guilty. The (Cleveland) Plain Dealer reports that the rapes occurred over nearly a decade. They were unso...More >>
  • Drone delays landing of Ohio hospital chopper

    Drone delays landing of Ohio hospital chopper

    Thursday, August 28 2014 8:08 AM EDT2014-08-28 12:08:46 GMT
    DAYTON, Ohio (AP) - Officials at a southwest Ohio hospital say a drone flying near the building delayed the landing of an emergency medical helicopter for nine minutes. The health of the patient aboard the helicopter trying to land at Miami Valley Hospital in Dayton wasn't compromised, but an official says the man flying the drone violated an FAA guideline that the operator must be at least 400 feet away from a hospital. Dayton Daily News reports that the Monday incident highlights the need ...More >>
    DAYTON, Ohio (AP) - Officials at a southwest Ohio hospital say a drone flying near the building delayed the landing of an emergency medical helicopter for nine minutes. The health of the patient aboard the helicopter trying to land at Miami Valley Hospital in Dayton wasn't compromised, but an official says the man flying the drone violated an FAA guideline that the operator must be at least 400 feet away from a hospital. Dayton Daily News reports that the Monday incident highlights the need ...More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 Worldnow and WFMJ. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms