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Credit card defaults highlight consumers' woesIf so, new figures from some of the nation's top credit card lenders suggest that many Americans are in a similar position, struggling to make payments on time as they face difficulties such as job losses, salary reductions and falling home values. Citigroup announced that its rate of charge-offs - comprised of credit card accounts the company deems uncollectable - rose from 10.21 in April to 10.50 in May. Capital One also announced an increase in charge-offs, from 8.56 percent to 9.41 percent. News of the issuers' troubles with collecting debt come as the country faces the highest unemployment rate in more than 25 years. Economists say that credit card defaults and charge-offs are likely to remain high until the job market stabilizes. In a separate regulatory filing, American Express released figures showing that credit card defaults increased to 10.4 percent from 9.9 percent during the same timeframe. Although AmEx's charge-off rate fell slightly, from 10.1 percent to 10 percent, the company said the change came from successfully selling off bad loans - not necessarily because the pace of bad credit card debt is slowing. Bank of America showed the steepest increase in defaults, from 10.47 percent to 12.5 percent. As credit card lenders see the pace of bad debt increasing, they are scrambling to protect themselves from further losses by slashing customers' credit limits, closing unused accounts and raising the minimum credit score needed to open a new account. As tight standards for borrowing continue to be enforced, experts suggest Americans keep a close watch on their own credit scores and aim to repay credit card debt in a timely fashion. "Consumers really have to keep their eyes on the ball and focus on getting out of credit card debt," consumer credit expert John Ulzheimer told USA Today.
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