Fitch Ratings reported that credit card holders who are behind in their payments by more than 60 days, known as late-stage delinquencies, dropped to a 23-month low in August. The delinquency rate for those behind by 30 days or more also fell. Banks' charge offs, however, increased after declining to a 16-month low the previous month. "With defaults still elevated and unemployment hovering near 10%, consumer credit quality measures will remain stressed," said Michael Dean, managing director at Fitch. "Absent any meaningful improvement to the employment situation, charge offs will remain high."