What does Roll Rate mean?

The roll rate, in simple words is the credit card debt which is actually “rolling” from one month to the other. Statistics say that those cardholders who are behind with their payments for a period of one month, they are likely to carry their debt to the forthcoming month, thus staying behind with their payments for two months.

Roll rates are predicted on an estimative basis, and where it is found that an account carries debts for 60 days it is further very likely these debts will be carried on to the next month, thus becoming a 90-day debt. The obtained data is being used in migration analysis ( how frequently and in what percentage users basically move from one delinquency stage to the other), and have the purpose of comparative studies.