While the majority of default rates on consumer loans have been declining, credit card default rates are reaching historic highs. Based on an index of new defaults, the Standard & Poor's/Experian Consumer Credit Default Indices, it appears that credit card loan default rates have soared to 9.14 percent, which is the highest index recorded since the information was first calculated in 2004, according to the New York Times.
"In [other loan] areas, defaults bottomed out around the same time as the stock market in the first half of 2009. Bank cards, on the other hand, continue to worsen and are at levels not seen in the history of these indices," managing director of Standard & Poor, David M. Blitzer, told the news source. The data is based on the proportion of accounts going into default each month.
This new information may be worrisome for many card holders. While credit cards can be useful in times of need, they often come with high rates and hidden fees that can lead to large amounts of debt. For those who already find themselves saddled with credit card debt, there are many methods that can help. To begin with, people who want to live debt free.
should stop using their credit cards altogether, and try to pay for expenses out of a personal account, according to MSNBC.