Did the economic toil of 2008 push cash-strapped consumers to wildly apply for credit cards and default on their existing debt? Not remotely, according to a bit of research:
- National credit card debt per credit borrower in the US was $1,717 in the second quarter of 2008 - up 2.63 percent from the first quarter of the year 8.6 percent from the second quarter of 2007. [Source: TransUnion.]
But the delinquency rate* - contrary to what you might expect - actually declined from the first quarter to the second quarter this year. This shows that issues of credit default may be localized and tied to the mortgage industry.
So, who said we are all credit mongers? It seems when it comes to tightening the proverbial belt, we're not hopeless.
*Delinquency incidence rate is the ratio of borrowers that are 90 or more days past due on their payment. The rate in the second quarter of this year was 1.04 percent, which is a 12.6 percent decline from the first quarter, but still higher than the 0.91 percent rate in the second quarter of 2007.