A recent report from TransUnion showed that the national credit card delinquency rate increased during the third quarter, which was the first increase in nearly two years.
The figure rose to 0.71 percent during the third quarter, which is 11 basis points above the second quarter's figure of 0.6 percent, according to the report. When comparing year-over-year figures, the rate is still a drop from the third quarter of 2010, when the delinquency stood at 0.83 percent.
"We find card delinquency being driven by a number of factors," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit. "One such driver is the changing risk profile of consumers opening new credit card accounts. In the face of competition for prime consumers and the clear deleveraging efforts of those consumers, lenders have been gradually shifting their focus to the sub-prime market."
Consumers attempting to save for retirement may want to pay down their credit debts quickly, as these items can hurt them in the long run. However, it may not be wise to pay something down too quickly, especially if it jeopardizes a person's ability to pay other necessary costs.