Digital News Report – Credit card debt can be detrimental for people when they are not able to make the monthly payment. According to TransUnion they have noticed 8.0 percent less cases of credit card delinquencies in the first quarter of 2010 compared to the previous quarter. Compared to the previous year there was 15.91 percent less credit card delinquencies.
On average Americans still carry a sizable balance on their credit cards. The average credit card debt for the first quarter 2010 was $5,165 which was 4.95 percent less than the previous quarters average of $5,434. People living in Alaska had the highest average for credit card debt with balances of $7,135 with Tennessee at $6,688 and Alabama coming in third with averages of $6,126. Iowa had the lowest average credit card debt of $3,872, with North Dakota averaging $4,144, and South Dakota at $4,218.
States that faced the highest amount of credit card delinquency rate was Nevada at 1.79 percent, Florida with 1.59 percent, and Arizona with 1.40 percent. The states will the lowest amounts of credit card delinquencies were North Dakota at .59 percent, South Dakota at .62 percent, and Alaska at .68 percent.
The good news is that it appears that Americans are working at paying off their credit card debts. This trend TransUnion believes is because of the uncertain employment conditions, and people wanting to have a credit available for hard times.
TransUnion did not point out that possibly some consumers may have did a debt consolidation loan to pay off some of their credit card debts. They can often pay off credit card debts by getting a debt consolidation loan. By refinancing credit card balance into one new loan it can make repaying large outstanding debts easier. The credit card consolidation loan can sometimes lower the monthly interest rate and the monthly payment. Talking with a credit counseling service may be beneficial as to making a debt management plan that can tackle the credit card debt as well.