Credit Card Delinquencies on the Decline

Credit Card Delinquencies on the Decline

There's some happy news out there when it comes to credit cards.

Hooray!

Turns out, delinquencies on credit cards actually sank to 2.47% in the fourth quarter, which, according to the American Bankers Association, is the lowest that number has been since 1994.

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According to CNN Money, experts see this decrease as a sign that consumers are making strides in actually reining in their debt. According to the American Bankers Association report, the percentage of accounts that were 30 days or more overdue was about half what the record high was, which was set in 2009.

It's not just the consumers who are doing their part to try to curb bad spending habits, though—banks are also shifting toward more conservative policies regarding who they approve for credit cards, ensuring that those who they give cards to will be more likely to have the ability to repay their debts.

Of course the credit cards news is optimistic, yes, but it doesn't come without a reminder that Americans, while they may be honing in on credit card debt, are still woefully behind in a few other key areas. In fact, another report from February by the New York Federal Reserve Board showed that the percentage of student loans delinquent by more than 90 days rose to 11.7% in the fourth quarter of 2012.

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