Hong Kong credit-card users seem to be finding ways to pay down their debts, according to results of the Hong Kong Monetary Authority's third-quarter survey on credit-card lending.

The amount charged off in the third quarter fell for the fourth consecutive quarter to $1.33 billion or 2.46% of average receivables during the quarter.

If this charge-off rate is maintained for the next three quarters, the "annualised" ratio will be 9.85% compared with 11.6% in the previous quarter. That's the lowest level since the first quarter of 2002.

The delinquency ratio also fell, to 1.23% from 1.27%.

The total number of credit-card accounts increased slightly by 0.2%. Total receivables was largely unchanged in the third quarter, following the transfer of about $218 million in restructured receivables outside the credit-card portfolio. A total of $258 million - or 0.5% of total credit-card receivables - was restructured during the quarter.

The rollover amount, which reflects the amount of "borrowing" customers using their credit cards, fell for the sixth consecutive quarter, to $28.8 billion from $29 billion as of the end of June. It represents 53.3% of total receivables.

Banks should remain prudent when issuing cards

"The improvement in the quality of the credit-card portfolio can be explained by the continued debt-rescheduling arrangements and the recent improvement in the employment situation," said William Rybank, the HKMA's Deputy Chief Executive.