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Number of late credit card payments drops

November 22, 2011

The amount of late payments to credit card companies has decreased recently, suggesting that consumers are becoming more stable after many months of struggling financially.

The amount of late payments to credit card companies has decreased recently, suggesting that consumers are becoming more stable after many months of struggling financially.

The Associated Press reports that out of the the six leading banks providing credit cards, three reported minimal default gains and three others reported declines. Four of the top six banks also said that the number of late payments by 30 days or more were down in the month of October.

According to many finance experts, the progress may start to slow down in the months ahead.

“The improvements are tapering off,” said Mike Dean, a managing director with Fitch Ratings said in an interview with the AP.

Some rating agencies, however, have stated that the trend of lower late payments would likely continue. Moody’s stated that the drop in the people missing payments would likely continue through the spring. In 2012, the group said it predicted rates of defaults would be at 4 percent, instead of its current 5.3 percent. 

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