Rising Card Delinquency Rates: An Overview

The financial strain of living paycheck to paycheck is becoming more evident in the credit card industry, with recent statistics revealing that cardholders are falling behind on their monthly payments. Synchrony Bank reported that loans at least 30% past due increased from 2.3% to 3.1% from last year to August this year. Similarly, Discover Financial Services reported an increase in delinquency rates from 1.4% to 1.8% over a 30-day period. The rise in delinquency rates in the credit card industry is an alarming trend for debt collection and creditors’ rights attorneys.

credit card debt collectionThe Impact of Buy Now, Pay Later (BNPL) Services

Buy now, pay later (BNPL) suppliers are also experiencing the storm, with loss and delinquency rates rising from five basis points to thirteen basis points as a percentage of total payment volume (TPV) in the past year. The rise in delinquency rates for BNPL services indicates that more consumers are struggling with debt.

Debt Reduction Industry Experiences a Boom

Due to excessive inflation, more Americans rely on their credit cards to get by each month, leading to a rise in credit card balances. As a result, the debt reduction sector is experiencing a boom, with more people seeking assistance to manage their debts. Howard Dvorkin, the chairman of Debt.com, has reported a significant increase in demand for debt relief services since last year, and this trend is expected to continue.

VyStar Credit Union Completes Purchase of First Coast Federal Credit Union

In other news, VyStar Credit Union has acquired First Coast Federal Credit Union. The move is expected to benefit First Coast Federal members, who will gain access to a wide range of benefits, such as great rates, low or no fees, unique products, and access to friendly service from the staff in Florida and Georgia. VyStar Credit Union plans to open up to 25 locations in Florida and Georgia over the next several years.

The Need for Debt Relief Services: A Warning

As the demand for debt relief services grows, so does the number of con artists looking to take advantage of those in need. Howard Dvorkin warns customers to research potential providers and choose reputable companies to avoid being scammed. With the rising delinquency rates in the credit card industry, it is crucial to seek assistance from trusted debt relief providers.

consumer credit collectionsHow to Formulate a Holiday Credit Card Payback Plan

With the holiday season approaching, it is important to have the plan to pay off credit card debts. Debt relief expert Matt Schulz recommends that consumers create a budget and pay off the highest interest-rate debts first. Seeking assistance from reputable debt relief providers can help consumers manage their debts effectively.

Behind the Growing Delinquency Rate for Credit Cards Conclusion

In conclusion, the rising delinquency rates in the credit card industry and the growing demand for debt relief services are concerning trends for consumers and creditors alike. While the need for debt relief services is expected to grow, consumers must be cautious and research potential providers to avoid falling prey to scams. With the holiday season approaching, it is important to have the plan to pay off credit card debts and manage finances effectively. As the economy continues to face challenges, it is crucial to seek assistance from trusted debt relief providers and financial advisors to navigate these uncertain times.

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