As the Senate Banking Committee considers a revamp to the nation’s financial regulatory system, two articles caught my eye regarding the nation’s credit card lenders.
Reuters News Service reported that credit card delinquencies were down in April 2010 for the fourth straight month. Default rates fell to the lowest level of the year for the majority of US credit card lenders, with the exception of Bank of America. Although the trend is a positive one, unemployment and underemployment, is still a significant factor in the default rates of consumers on their credit card debt.
The Toledo Blade’s business writer Larry Vellequette wrote an interesting article in today’s edition regarding the average debt of Toledoans. The Blade reported that the average non-mortgage debt in Toledo was $25,239.00, up slightly from last year. Toledoans’ debt load was in the middle of the pack when compared to the 20 largest cities in the nation and the three largest cities in Ohio. The information in the article was compiled by the credit reporting entity Experian.
I can’t disagree with the findings of The Blade’s article. Although I do not keep track of the numbers, we have helped clients with credit card debt within range of the numbers reported. Medical debt and deficiency balances after a home foreclosure or auto repossession are also on the list of debts that motivate clients to seek our assistance.
Michael P. Dansack