Do you ever wonder how well the credit card industry is doing? The health of the credit card industry is measured by how cardholders are making payments on their debt; late payments or failure to pay on the debt are factors that effect the credit card industries health. According to CreditCards.com, about 1 in 20 Americans with credit files are at least 30 days late on a credit card.
Late payments and unpaid debt obligations significantly affect consumers and their credit. Increased debt and the inability to pay can lead to bankruptcy filings for consumers. However, it is reported that Bankruptcy is actually down from last year, with 255,000 Americans filing in the first quarter of this year, which is 4.1 percent less than 2020. However, the number of people who have defaulted on their credit card bills is on the rise at 2.52 percent, which is a 1% increase over last year.
Who is defaulting on those payments? The average age of people defaulting on their payments is those under the age of 40. The lowest delinquency rate is found in people over 60 years of age. The statistics also show that certain states fall victim to delinquencies more than others, with Mississippi leading in missed credit card payments, and North Dakota having the lowest default rates in the country.
Consumers with late payments and those who have defaulted on their payments will feel the affects of the delinquencies in their credit scores. Your credit is a history is a record of your financial behavior. A low credit score can significantly impact your life.
Build a Good Credit History
Good credit isn't just something that is nice to have; it is incredibly important if you want to have freedom to navigate with credit issuers and lenders. The good news is it is possible to improve your credit and work to raise your credit scores. Remember, you can't improve your credit if your finances are not in order and you are still making late payments or missing payments entirely, so make a commitment to get your credit back on track today.