Bankers and industry analysts have indicated this week that after an earlier rise in delinquent payments for US consumer credit cards and other loans, they have recently started to stabilize.

Fintech app Zhongtong Finance noticed that this trend contrasts sharply with recent data. Recent data shows that as some Americans' financial situations improve, the number of credit card cancellations across the entire industry has surged.

Mark Zandi, Chief Economist at Moody's Analytics, stated: "The tightened underwriting policies after last year's banking crisis seem to be taking effect, as is the slowdown in inflation."

Zandi cited data from Equifax, a consumer reporting agency, stating that the delinquency rate on all household debts in August fell slightly above 2%, compared to around 2.5% in 2019.

Equifax's data shows that in August, overdue payments on credit cards, auto loans, personal loans, retail cards, and first mortgage loans all decreased.

This trend may suggest that as savings dwindle during the pandemic and living costs rise, the financial situations of Americans with overdue payments are becoming more stable.

According to data from the Federal Deposit Insurance Corporation (FDIC), the net charge-off rate of Bank of America's credit cards (i.e. the amount of loans that the bank expects will not be recovered) rose to 4.82% in the second quarter, the highest level since 2011.

Mark Mason, Chief Financial Officer of Citigroup, said at an investor conference on Monday, "The default rate has clearly been rising, but it has only started to reach its peak in the past quarter or so." "This is a good sign."

For several months, industry executives have been describing the divergence in customers' financial conditions, pointing out that customers with lower income and credit scores are facing more difficulties than wealthier customers.

Mason stated that consumers with lower credit scores have shifted their spending towards purchasing essential household items rather than non-essential items.

"We are seeing a flat delinquency rate on the consumer side, which is good news," said Brian Moynihan, CEO of Bank of America, at the same conference.

Zandi stated that if the economy and job market remain resilient, consumer defaults may be close to their peak.

Due to the deterioration in the commercial real estate market, investors have been increasingly concerned that the US economy may fall into a recession, leading banks to tighten lending standards last year.

In recent months, US inflation has slowed, strengthening expectations that the Federal Reserve will cut interest rates by at least 25 basis points and continue to ease monetary policy at its meeting on September 17-18.

Susan Fahy, Executive Vice President of VantageScore, a credit scoring modeling company, stated that tax reduction measures may relieve some variable rate borrowers as their repayment obligations may be eased.

Wells Fargo & Co also expects that after a slight increase in the first half of the year, net credit card charge-offs will decrease in the third quarter.

In the second quarter, the bank's net credit card charge-offs increased by $72 million, compared to $57 million in the first quarter.

"Overall, consumers are feeling good," said the company's Chief Financial Officer Michael Santomassimo to investors this week. He stated, "We do expect the credit card charge-off rate to slow down in the third quarter."

JPMorgan's CEO Daniel Pinto stated that consumers are "still in a solid position".