Credit card holders just barely bucked year-end credit card trends at the end of last year, charging less than expected and making slightly more of an effort to get caught up on their credit card balances compared to 2007, according to a recent anonymous survey of 27 million random TransUnion credit profiles.

The average credit card balance nationwide only rose one-third of 1 percent to $5,729 for the fourth quarter of 2008, compared to the 4-percent increase TransUnion recorded at the end of 2007. This marginal increase in credit card spending may be a sign that “consumers are becoming more conscientious about their credit card debt,” says Cliff O’Neal, TransUnion’s senior director of corporate communications (“TransUnion.com Quarterly Credit Card Analysis Reveals Delinquency Rates up 11 Percent from Previous Quarter,” TransUnion, March 9, 2009).

Similarly, delinquency rates — the measure of credit card borrowers who are at least 90 days past due on their accounts — rose only 1.21 percent at the end of 2008, a slightly smaller increase than the year-end figure of 1.36 percent for 2007.

Despite these slight improvements, TransUnion predicts that, as the unemployment rate continues to rise, Americans will continue to fall behind on their credit card payments, reaching a 1.8-percent delinquency rate by the end of this year.

However, the credit bureau is quick to point out that the survey also reveals that Americans are altering their credit-use and debt-repayment habits to possibly avoid being caught without available credit “in a pinch” as credit card issuers, in an effort to minimize their risk, are increasingly slashing credit limits and closing inactive credit accounts.

Discover has already closed 3 million inactive accounts and plans to close an additional 2 million, while Capital One is suspending the accounts of all borrowers who have not used their card in 12 months. Bank of America has closed all zero-balance accounts that have been inactive for at least one year (“Credit Card Issuers: Buy Something or Else!,” The Wall Street Journal, March 12, 2009).

“With all the messages out there about limits being reduced and interest rates going up, people have started to focus on making sure they manage the cards they have,” says Steven Katz, TransUnion’s director of corporate communications.

Popularity: 4% [?]