Retail Credit Card Debt a Problem
According to Fitch
Ratings, Americans are still having issues with their credit
card debt – but in particular that debt that is tied to their
retail credit cards. The company said that there was an increase
in the number of defaults on retail cards. According to them
there was a 0.22% point increase to bring it up to 13.23% of all
accounts have one into default. When compared with same time
last year – the number of charge offs for the credit cards has
increased 10%. Now, they said that these numbers are actually
down from February of this same year – which is when they saw a
marked increase and a record high of 13.41%.
With delinquencies falling from February they said that there is
a chance that this is the beginning of a trend. They said that
there was a chance that there could be a future drop in defaults
– but these numbers are still showing the effects of too many
people unemployed. With unemployment numbers holding steady too
many people are out of work and unsure of what to do from here.
They are trying to pay down debt but do not have the necessary
funds to do so or the tools to figure out what to do.
Experts say that many people would do well to look into a debt
consolidation of some kind which would help them get out of debt
faster and with less stress. They contend that the debt
consolidation loan would bring down their monthly payments which
in itself could be a huge help for those struggling to make ends
meet. In some cases it is simply a small amount of debt that
needs to come off for these families to be able to make their
bills.
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