Credit Card Debt Drops to 8-Year Low

The average American’s credit card debt hit an 8-year low in the second quarter of the year—even as rates hit a 9-year high. The average combined credit card debt fell to $4,951, down 13% from $5,719 over the same stretch last year, according to figures from the TransUnion credit reporting agency. The average hasn’t been below $5,000 since the first quarter of 2002, the AP reports.

The dropping debt is evidence that many Americans are paying down their balances in the uncertain economy. The rate of borrowers who were more than 90 days behind on their payments fell to 0.92%, the first time it’s been below 1% since the second quarter of 2007. (More credit card stories.)