Issuers, cardholders sharing in debt reduction
In recent months, the decrease in credit card charge offs processed on the networks of major credit card companies has encouraged a number of these institutions to once again extend new credit lines to struggling 
borrowers.
While some data indicated consumers were becoming more reliable with payments, new research suggests improvements in consumer fiscal responsibility accounted for less than half of the $1.1 trillion decrease in consumer debt in 2010.
Good behavior by consumers accounted for $375 billion in debt repayments to credit card and financial service providers during this time, Time Magazine reports. However, the majority of this trillion-dollar decrease - $695 billion - was due to charge offs by banks and credit card issuers.
The figure accounts for home foreclosures and closed credit card accounts by financial providers. This means these institutions are now paying off more consumer debt than the general public itself.
Gas prices and consumer spending have both been on the rise in recent months. As a result, credit card companies could end up footing more of the bill for excessive spending by some consumers in the coming year.
5-7-2012
by Chris Martin
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4-6-2012
by Dan Seitz
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by Neil Hayashi
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