According to an Equifax report released on Jan. 12, 2012, U.S. consumers continue to make timely payments and pay down their retail credit card and bank balances resulting in a significant reduction in the number of card write-offs compared to 2010 levels.
The improvement in bank and retail credit card write-offs reflects a steady level of improvement over the past 18 months.
- Bank credit card write-offs peaked at nearly 13 percent in July 2010 and retail credit card write-offs peaked at more than 14 percent in July 2010.
- Bank credit card write-offs currently stand at 5.53 percent (39 percent lower than 2010 levels) and retail credit card write-offs are at 8.4 percent (representing a 26 percent decline over 2010 levels).
- Cumulative revolving card balances peaked in October 2008 at more than $752 billion, and despite a recent uptick attributable to seasonal purchase activity, have since declined by almost 20 percent (December 2011 cumulative revolving card balances stand at $604 billion).
- Total consumer debt outstanding also peaked in October 2008 at $12.4 trillion, and in December 2011, U.S. consumers carried $11.1 trillion in total consumer debt, representing a decrease of more than 10 percent.