Credit card companies wrote off consumer debt more slowly in December, causing the U.S. credit card charge-off rate to slip to 10.32 percent from 10.56 percent in November.
The rate accounts for balances written off as uncollectible in the form of a yearly percentage of total unresolved principal balance. The drop has been speculated to be the cause of inflated overall balances as a result of holiday shopping.
Agencies specializing in credit forecasting predict 12 percent and 13 percent rates during the first few months of 2010, the result of cardholders laboring to pay off holiday charges. Unemployment will also continue to make paying off debt difficult for consumers.
Until now, the record rate has been 10.76 percent.
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