It’s healthy for the economy in the long run but it’s also a drag on the economy in the short run when people are spending their money to pay down their debt instead of buying more stuff with their money.
The average national credit card borrower debt slid downward for the fifth consecutive quarter by 4.1% to $4,951, marking the first time the average has been below $5,000 since 2002, according to a report released today by TransUnion.
This, coupled with the fact the national credit card delinquency rate for borrowers 90-plus days delinquent plummeted to 0.92% in Q210 (down 17.1% from the first quarter and 21.3% from last year) suggests that borrowers are saving more and spending more responsibly.
And a clue to the amount of financial stress facing Arizonans right now is that Arizona is #3 in delinquent credit cards.
Nevada had the highest incidence of credit card delinquency, 1.5%, followed by Florida, 1.24%, and Arizona, 1.11%.