According to the report, the number of consumers paying their credit card balances with delays of at least 30 days is the highest since 1974, when the professional association has begun keeping its records. ABA attributes the rising delinquency rates to the jump in unemployment levels as well as to the tightening of lending standards by banks in a bid to offset default risks.
The overall ABA delinquency rate includes loans in eight categories, such as home equity, home improvement, indirect and direct auto, mobile home and personal. According to the same source, bank credit cards delinquency rates have also registered a record high in Q1 2008, rising to represent 4.75 percent of all accounts, compared to 4.52 percent in Q4 2008. This comes as consumers are seeking to employ bank cards in order to compensate for temporary losses of income.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now