The number of credit card holders who fell behind on payments in the first quarter of the year dropped from a record high, falling for the second time in three quarters, the American Bankers Association said.
The trade group said 3.51 percent of credit card accounts were delinquent in the first quarter of 1997, down from the record high of 3.72 percent registered in the fourth quarter of 1996. In the first quarter of 1996, 3.53 percent of accounts were behind in payments.
“It may have stopped raining, but there are still clouds in the sky,” said James Chessen, chief economist for the ABA. “Throughout the rest of the year, banks and consumers should keep their lending and spending in check.”
Credit payments are considered delinquent when they are more than 30 days overdue.
The report is another sign that U.S. banks are continuing efforts to reel in credit card debt and reduce their risk from delinquencies. Since 1995, banks have been working to trim overdue credit debt on their books by raising fees for late payments, making more frequent credit checks and lowering credit limits on delinquent customers.
The ABA said that 40 percent of the banks covered by the survey have lowered credit limits on existing accounts.
