Instances of defaulted credit card debt controlled by the nation's largest lenders rose during the month of March, to 8.31 percent, according to the latest statistics from Fitch Ratings. This was up from the 8.05 percent rate observed in February, and marked the first time in six months that there was an increase in charge offs.
However, Fitch managing director Michael Dean stated that his group thinks the change is more likely the result of seasonal factors such as bankruptcy filings that come during tax season, rather than a new trend in consumers' credit card debt payment.
This may be illustrated by the nationwide rate of 60-day delinquency, which fell once again in March to 3.11 percent, the report said. The February rate was 3.2 percent.
Declines in delinquent credit card debt are often viewed as precursors to those in charged off accounts. As a result, it's likely that charge offs will continue to drop in the coming months.