Equifax: Credit Card Write-Offs are Trending Down

According to the latest National Credit Trends Report issued Thursday by Equifax, U.S. consumers’ payments on retail and bank card credit balances were more timely in 2011, resulting in a significantly lower number of card write-offs than in 2010. Bank credit card write-offs are at 5.53 percent, down 39 percent from 2010 levels, while retail credit card write-offs are at 8.4% percent, a decrease of 26 percent.

In a statement, Equifax’s (NYSE:EFX) Senior Vice President of Special Client Services Michael Koukounas said, “Declining write-offs, growing card originations and the stabilizing of card balances are a precursor to balance increases, which can help to return the banks to profitability in this lending sector.”