The number of credit card defaults increased in May this year after there was a rise in the number of Americans falling into unemployment.

According to Capital One Financial Corp, provider of the MasterCard and Visa credit cards, the increase in unemployment levels have left a growing number of Americans struggling to meet their debt repayments.

In a report, analysts at Bernstein Research said: “Data from May showed continued signs of stress for card issuers, reflective of worsening unemployment trends and deteriorating macro [economic] conditions."

Regardless of the data from Capital One, figures from lenders such as American Express, Citigroup Inc and the Bank of America Corp, are proving to have been hit harder as their default rates exceed 10 per cent.

A spokesperson from JPMorgan said:"We continue to be concerned with losses and are managing our risk appropriately.”

According to analysts led by Jeff Harte, at Sandler O'Neill & Partners, the number of defaults is expected to increase alongside the number of job losses.

They said: “While declining delinquencies could be a sign of stabilising charge-offs ahead.... We expect unemployment to continue to trend higher given what we expect to be an anaemic economic recovery, suggesting that still meaningfully higher charge-offs should be anticipated."