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Washington - Credit Card Delinquencies At Record Pace |
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Washington - Soaring U.S. une
Fallout from a still deteriorating housing market caused the rate of consumer loan payments at least 30 days late to rise to 3.23 percent in the January-to-March period from 3.22 percent in the 2008 fourth quarter, the American Bankers Association said.
Delinquencies were the highest since the ABA began tracking the data in 1974. Late payments on home equity borrowings set records, rising to 3.52 percent from 3.03 percent on loans and to 1.89 percent from 1.46 percent on lines of credit.
The overall delinquency rate actually understates consumer pain because it excludes bank-issued credit cards, where credit deterioration was severe.
Delinquencies on the value of all card debt soared to a record 6.60 percent from 5.52 percent in the fourth quarter. The rate of delinquent accounts rose to 4.75 percent from 4.52 percent, near the record 4.81 percent in the spring of 2005.
"The biggest driver is job losses," ABA Chief Economist James Chessen said in an interview. "When people lose their jobs or work fewer hours, it makes it that much harder to meet their obligations. Unfortunately, we're going to see higher job losses in the next year, and I expect elevated delinquencies."
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Read Comments (4) — Post Yours »
1
Jul 07, 2009 at 04:24 PM Anonymous Says:
Those Credit card companies produced 150 Ceo bilioners and 150 milion people in debt and 100 thousand jobs in India the hell with them
2
Jul 07, 2009 at 04:25 PM Can't cry for Visa Says:
It's partly the credit card companies' fault. The interest rates are so high with so many "gotchas" that people can't afford to pay. They also encourage people to buy what they can't afford to buy.
Rule #1 when buying with a credit card:
If you can't afford to pay cash, you can't afford to buy it with a card!"
If you can't buy it without a card either don't buy it or tear up the card!
3
Jul 07, 2009 at 06:50 PM Anonymous Says:
Well, here we go my $120,000 in debit screw them, I needed my sushi
4
Jul 08, 2009 at 10:45 AM Five Towns Resident Says:
Credit cards are the biggest scam going. People think that they're free money, when they're just the opposite. I paid off and cut up my last credit card three years ago. Today, I use either cash or a debit card.