If there’s one lesson the recession may have taught you, it’s that avoiding credit may be one of the best courses of action.
The urge to take out a card and buy whatever you want is pretty easy, especially before that bill comes in the mail at the end of the month. Many people may have learned that the hard way during the economic downturn.
Still others may have had no choice but to pull out plastic to pay for things like groceries or even rent, especially as unemployment reached double digits. However, a recent report from Moody’s Investors Service showed that Americans may be finally making headway in trying to get out of debt.
According to the company, late payments on credit cards dropped for the seventh straight month in May, falling to 5.26 percent of accounts. Fewer people may also be just starting to fall behind on their bills, as early stage delinquencies on plastic fell to 1.26 percent.
Meanwhile, the Federal Reserve Board reported credit card debt dropped at an annual rate of 9 percent during this year’s first quarter, while last year saw it fall 9.6 percent.