Americans Paying Credit Cards Off Fastest In Recent History

New York – July 02, 2013 – Strategic Consulting Services (www.strategiccs.org), a New York firm providing client-focused financial consulting, reports consumers are making efforts to improve their personal finances and pay off over $110 billion as part of a downward trend. National reports and polls show that Americans are making significant efforts to fix their finances, as average balances on cards and rates of late payments both decreased.

According to new statistics from TransUnion credit monitoring bureau, the average amount of credit debt decreased 4.75 percent on a quarterly basis. States with the highest average credit card balances were Alaska, Colorado, North Carolina, and Connecticut – ranging from $5,498 to $6,789 per borrower. Iowa, North and South Dakota, and Wisconsin were the top four US States with as little as $3,810 average balance per borrower. National delinquency rate on credit accounts, those beyond 90 days late, slipped to 0.69 percent through March 2013. This was down 0.73 percent in the same period the year before and 0.85 percent from three months prior. Overall a drop of nearly 19 percent says TransUnion.

Overall consumer debt continues to drop from its peak of $12.68 trillion in the third quarter of 2008. Numbers from the Federal Reserve show aggregate consumer debt declined by $110 billion to reach a total indebtedness of $11.23 trillion. "In addition to the seasonal quarter-over-quarter drop, the year-over year improvement in credit card delinquencies is indicative of how consumers continue to value their credit card relationships," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit.

As the Federal Reserve shows credit card balances decreasing, overall consumer spending also slowed to 0.2 percent in March, down from 0.7 percent in February according to the Commerce Department. "The relationship that we have individually with our credit cards is changing - how we use them, acceptable balances, strategies for APRs, and overall opinions about consumer debt are changing. Each generation of course has had their own views but since the recession there has been a change," said Ben Kittle, Senior Financial Consultant at Strategic Consulting Services. "Twenty years ago credit cards were only a conversation you had with your bank, today celebrities on every TV station are advertising why you should use their card daily. As our views change, so will our behavior and Americans are this year beginning to pay off credit cards better than they have in decades."

About Strategic Consulting Services
Strategic Consulting Services is a finical services firm with teams specialized in Debt Management, Mortgages and Business Services. With a comprehensive client-focused approach, the Company provides assessments looking beyond immediate financial issues to help clients build greater financial strength with smart habits and choices. Since 2007, Strategic Consulting Services has helped individuals and small businesses create savings plans, reduce debt, and make wiser spending choices. For more information visit www.strategiccs.org.