Discover Card saw the rate at which it charged off bad credit card debt that had gone 90 days or more without payment fell to 7.15 percent in September, down from the 7.89 percent observed in August, according to a Businessweek report. The company reported that the decline saved it $121 million in the month.
At the same time, the company's delinquent credit card debt – accounts 30 or more days behind – dropped to slightly, from 4.47 percent in August to 4.41 percent in September, the Businessweek report said. It was the ninth straight month in which the company observed a decline in this type of account.
Most lenders across the industry have reported similar drops in defaulted and delinquent credit card debt over the last several months. These declines have come despite continued high unemployment rates, which typically have kept many borrowers from making regular payments into their accounts.