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Credit card delinquencies fall to 5-month low in May

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Fewer Americans fell behind on their credit card bills in May, signaling that consumers are closer to getting their debt levels under control even if the economy remains sluggish.

The lower delinquencies, the fifth straight month of improvement, should translate to fewer borrowers defaulting on debt in the coming months.

Losses from uncollectable loans have ebbed from last year’s peak, which helped many of the biggest U.S. banks record better-than-expected profits in the first quarter. U.S. households reduced their debt by 1.7 percent in 2009, the biggest drop in decades, and continued to shed debt at an annualized rate of 2.4 percent in the first quarter of 2010.

Full story: Credit card delinquencies fall to 5-month lows – Yahoo! News