The rate at which consumers paid off their seriously delinquent credit card debt improved during the month of July for one of the nation's largest credit card lenders, even as it saw more customers fall behind for the first time instead of working to reduce debt.
The latest regulatory filing from Capital One Financial revealed that the company saw the rate at which it charged off seriously delinquent accounts as being uncollectable slip in July, but its early-stage delinquencies increased, according to a report from Dow Jones Newswires. The lender's charge off rate – the total proportion of its balances that are so far behind on payments they must be written off as uncollectable – slipped considerably, to 3.77 percent from June's 4.41 percent.
However, the number of balances that fell 30 days or more delinquent rose during the month, though less appreciably, the report said. Capital One saw early-stage delinquencies rise to 3.37 percent in July from 3.33 percent the month prior.
Many experts have said that rising prices for necessities have made it more difficult for consumers to work their monthly budget, which may account for the rise in early delinquencies.