How long can a good thing last? Writeoffs of credit card loans have already plunged below levels that issuers consider sustainable. Continued improvement in delinquencies points to a further dip in loss rates in the months ahead.

The percentage of balances overdue by one to two months fell at five of the six largest issuers in April, according to figures reported this month. The movement was in line with seasonal forces including tax refunds, which make it easier for borrowers to meet their obligations.

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