Credit card delinquencies in April continued to drop for the fourth month in a row in April, an indication that consumer finances could be stabilizing, even as unemployment rates remain in record territory. In addition, all but one of the six major U.S. credit card issuers saw credit card defaults drop as well.
Credit card delinquencies are a measure of the number of credit card holders more than 30 days behind with their credit card payments. They are early-stage indicators of future credit card defaults, i.e. credit card debt that card issuers have been forced to write off.
Even as both credit card delinquencies and defaults showed one of the best performances in more than a year, analysts warned that the continuing high unemployment rates are likely to keep credit card defaults in record territory.