Credit Card Defaults Rise Again in December

NEW YORK -- U.S. consumers fell further behind in paying off credit cards last month, a trend that's expected to worsen this year amid growing unemployment, Fitch Ratings said Wednesday.

An index of charge-offs on so-called prime credit card portfolios rose in December to its highest level in four years, while the rate at which cardholders repaid outstanding balances slowed to its lowest since mid-2004, Fitch said.

Charge-offs are loans written off as not being repaid.

Fitch said its prime charge-off index in December grew to 6.84%, rising 31% higher than a year earlier. Fitch forecasts the rate will reach 8% this year as job losses spread. ...