Although the economy is still in terrible shape in Fort Lauderdale and everywhere else, credit card users seem to be getting better at handling their credit card debts. The credit card industry has reported a steady decline in late payments and defaults.

This coincides with earlier reports from four of the nation's six largest banks indicating a continued decline in the number of defaults on credit card debt for the second quarter of 2011. According to the reports, defaults have dropped from a high of nearly 11% in 2010 to less than 6% in 2011. This is due in part to regulations introduced in 2009 that prevent credit card issuers from charging high fees or exorbitant interest rates.

Market analysts say that another reason for the improvement is that uneasy consumers are cutting back on credit card spending. They are less apt to buy luxury items and are instead concentrating on reducing debt. The total unsecured debt in this country has dropped 21% from its high of $957 billion in 2008.

However, Fort Lauderdale credit card debt reduction attorneys note that Discover's recent third quarter profit report indicates that this trend is reversing. According to Discover, a rise in debt is coming as people are forced to use their credit cards to pay for higher-priced gasoline. This is a further indication that many families must run up high credit card debt in order to simply survive.

Source: Daily Herald "Credit card defaults, late payments continue slide" Sept. 18, 2011