Late Payments on Credit Cards Near 20-Year Low

Good job, everyone.

Credit reporting agency TransUnion says 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, when it was at an all-time low of 0.56 percent.

That’s not to suggest a steady drop — a year ago the rate was 0.63 percent, and in the first three months of this year it was 0.69 percent, The Associated Press says. But it’s definitely good news. TransUnion also says there are only two states where the delinquency rate did not decline from a year ago: Indiana and New Hampshire.

Average credit card debt per borrower hasn’t changed much; it was $4,965 in the second quarter and $4,971 in the same period last year, TransUnion says. Of course, many Americans carry no debt at all, as we explained in “The Truth About Credit Card Debt.” Seriously indebted cardholders drive that average up, while those who pay in full every month help keep it down.

Total debt is down, even if the average hasn’t moved much. The AP says: “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.”

Late payments on mortgages are also dropping — and at a much better clip than credit cards. “The national mortgage delinquency rate (the rate of borrowers 60 or more days past due) continued its unprecedented decline in 2013, dropping to 4.09 percent in Q2 2013, nearly 26 percent lower versus the same time last year,” TransUnion says.

It’s the third quarter in a row with record improvement on mortgage delinquency, and every state — even Indiana and New Hampshire — improved its rate.

Sign up for our free newsletter

Like this article? Sign up for our newsletter and we'll send you a regular digest of our newest stories, full of money saving tips and advice, free! We'll also email you a PDF of Stacy Johnson's "205 Ways to Save Money" as soon as you've subscribed. It's full of great tips that'll help you save a ton of extra cash. It doesn't cost a dime, so why wait? Click here to sign up now.

Check out our hottest deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,224 more deals!

Comments & discussion

We welcome your opinions, but let’s keep it civil. Like many businesses, we reserve the right to refuse service to anyone. In our case, that means those who communicate by name-calling, racism, using words designed to hurt others or generally acting like an uninformed bully. Also, comments that include links to email addresses or commercial websites typically aren't posted. This isn't a place to advertise your business.