Every quarter, analysts look at the average amount of credit card debt each individual in the country is carrying. For the first time since 2002, that number fell below $5,000 between April and June this year.

There are a couple of theories about what caused the drop in average total debt, including more consumers filing for Chapter 7 and 13 bankruptcy. For many people with bad credit, filing for bankruptcy is the best option for getting rid of debt and starting over.

According to the credit reporting agency TransUnion, the average consumer debt from bank-issued credit cards dropped to $4,951 during the second quarter of this year. That number is down 13 percent from the same time last year.

So are that many people simply paying off their credit card debt? Maybe, but many people suggest other factors have led to this drop in credit card debt.

One theory suggests that the higher rate of housing delinquencies is contributing to lower credit card debt. In places like Florida, the number of people who are more than 90 days past due on their house payments is still at 1.24 percent. When people do not pay their mortgage for a month, they have more cash on hand to cover other debts like their credit card bills.

Another likely cause is the increase in consumer bankruptcy filings. As people with overwhelming credit card debt get bankruptcy relief, that debt no longer contributes to the national average.

Source: Tampa Bay Online, "Credit card debt drops to lowest level in 8 years," Associated Press, 25 Aug 2010