Credit card debt has always been a major concern, for baby boomers especially that have multiple financial obligations in this trying economy. U.S. credit card debt not only dropped to an 8-year low, but delinquencies continued to decline in the second quarter, CNNMoney.com reported.
Based on reports by the credit bureau TransUnion, credit card debt fell 4.1% to an average $4,591 during the quarter, making it the fifth consecutive quarter of declines and the first time delinquencies dropped below $5,000 since 2002.
The Wall Street Journal reported non-payments dropped at the fastest pace since the end of 2007 based on TransUnions findings.
Credit card debt is making consumers less likely to sign up for new cards. According to TransUnion as reported by CNN, the number of new credit cards declined 6.5% year-to-year.
Consumers continue to pay down their credit cards in response to economic uncertainty and high unemployment, said Ezra Becker, director of consulting and strategy at TransUnions financial services unit, CNN reported.
CNN also reported state-by-state debt: the state with the highest average credit card debt was Alaska at $7,148, followed by Tennessee at $5,654, then Hawaii at $5,594.
