If a Tennessee resident fails to pay a credit card balance, the card issuer may write it off. According to a representative from Capital One, a degradation in customer credit quality has led to an increasing number of charge-offs. It has also lead to an increasing number of credit accounts becoming 30 days past due. The charge-off rate in the United States was 3.82% for the first quarter of 2019. However, the charge-off rate at Capital One was 5.04%.

In some cases, a lack of information about a customer was to blame for accounts being given to riskier borrowers. Those potentially impacted by the financial crisis may have had notes on their credit report come off in recent years. At Discover, they are trying to protect themselves by closing dormant accounts and limiting access to credit limit increases.

The increase in charge-offs and late payments does not mean that credit won’t be available to those who need it. Credit card issuers acknowledge that they need to compete for quality customers. Therefore, consumers who have a good track record with debt may still be able to get credit at affordable interest rates or with other perks. In fact, Discover’s CEO said its target customer is a person who can get a card from multiple providers.

People who are seeking debt relief may want to consider filing for bankruptcy. By filing for protection from creditors, a debtor could potentially put an end to harassing phone calls and collection letters. It may also put an end to attempts to foreclose on a home or repossess property. In many cases, debtors will retain most or all of their property. An attorney may answer any questions a debtor has about the process of filing for bankruptcy.