Consumers in the U.S. took on less credit card debt in August as banks continued to charge-off past due accounts, resulting in another net loss in card debt outstanding. The total amount due on credit card accounts fell to the lowest level since the financial crisis began.
There are distinct market trends unfolding that give validity to the notion that the credit card sector is finally bottoming out, and is poised for growth in the future.
Credit card chargeoff rates at U.S. issuers have plummeted in the past 12 months. But it should be noted that the current charge-off rates are still above historical averages. So how low can credit card charge-off rates go?
As the credit and collections industry weathers the economic storm of the past few years, there are those who believe that the sounds of thunder and lightning threaten its very survival. But regardless of whether you collect credit card debt, student loans, or other receivables, this is the moment and opportunity to positively shape our future.