The biggest news circulating on the cyber news stands this week was the fact that late payments on credit cards are at their lowest point since 1994.
According to the Fox Business report by Kate Rogers, "payments that are at least 90 days overdue fell in the second quarter 0.57%..." That would be the second-lowest rate in almost 20 years. When grunge was king and pogs were still a thing, the rate was 0.56%.
The good news for consumers doesn't stop there. The total credit card debt for Americans' plummetted 16.5% below its highest point in July 2008. It now sits at $2.7 billion, and according to credit expert Gerri Detweiler, that's a good thing.
“Plenty of people still have chronic unemployment, are underwater on their homes and still have credit problems, but the majority of consumers have their payments under control,” Detweiler says. “People who really ran into trouble are being more cautious with their credit; the temptation may not be as great either.”
Detweiler gives Rogers' readers some helpful tips including how to negotiate your interest rates, prioritizing your debt and considering consolidation. Lastly, Detweiler mentions that you shouldn't be afraid to reach out for help with credit counseling if you are more than $10,000 in debt. I'd add that this should be a last resort, since it can obliterate your credit score.
Adriene Hill has an amusing take on the story over at MarketPlace.org, putting the familiar spin of Family Feud on Americas' downward spiraling debt. Hill's Family Feud host (I'm not sure who it is, but I'd like to imagine it's Louis Anderson for old time's sake) cites some interesting reasons why the trend is trending the way it is. Mr. Anderson mentions that with more employment and cash flow, people are more likely to pay their credit cards as well as their mortgage, where as before, keeping their house was more important than paying off their balance.
With the recession looking like it's more and more in the rear-view mirror every day, this is just another good sign things are headed in the right direction.
