US Credit Card Defaults Show Signs Of Stabilizing

The rate of U.S. credit card defaults showed signs of stabilizing last month, an indication that American consumers may not be in as bad shape as feared despite job losses and the housing slump.

Bank of America Corp (BAC.N) in a regulatory filing on Monday said credit card default rates dropped in July after several months of a steep deterioration. JPMorgan Chase & Co (JPM.N), Citigroup Inc (C.N), and Discover Financial Services (DFS.N) also said bad-loan levels fell.