Loan Delinquencies Hit Record High

Unemployment Driving Continued Rise in Consumer Loan Delinquencies, ABA Says

(AP)  Consumer loan delinquencies edged up to another record high in the first quarter, according to data released Tuesday by the American Bankers Association.

A continued rise in unemployment has been the main culprit for the continued rise in delinquencies, the trade association said.

"The number one driver of delinquencies is job loss," James Chessen, the ABA's chief economist, said in a statement. "When people lose their jobs, they can't pay their bills. Delinquencies won't improve until companies start hiring again and we see a significant economic turnaround."

The composite delinquency rate among eight types of closed-end installment loans rose to 3.23 percent in the January-March period, according to the ABA's consumer credit delinquency bulletin.

That is the highest recorded since the ABA began tracking the rate in the mid 1970s and tops the previous record of 3.22 percent set in the last quarter of 2008.

The ABA said credit card delinquencies also moved higher, rising to 4.75 percent in the latest quarter from 4.52 percent in the fourth quarter last year. The credit card delinquency rate nearly reached the record high of 4.81 percent set in the second quarter of 2005.

While the total number of delinquent credit card loans failed to hit a record, the percentage of all outstanding debt on cards hit a record high of 6.60 percent in the first quarter, the report said.

The ABA defines a delinquent payment as one that is more than 30 days past due.

The composite delinquency rate incorporates payments data on auto, personal, home equity, home improvement, recreational vehicle, mobile home and marine loans. It excludes credit card delinquencies because cards are considered open-end revolving credit lines.

Among the group of close-end loans, mobile home loans had the highest delinquency rate at 3.70 percent. Home equity loan delinquencies were the second highest with 3.52 percent of customers at least 30 days behind on repayment.

[payasyougo]

NAR/NAB - Turning a 4 state housing bubble into a national disaster.

[noloyalisti]

This is Wal-Marts, Exxon, AT&T and the drug and medical insurance companies and their American Congressional slaves' wet dream.

[sjc_1]

14 million people are out of work and this is news? We depend on a system that you can not depend on and then people wonder why this occurs...

[noloyalisti]

This is Mission Accomplished for the wacko free-marketers led by the scum sucking Bushoccio Crime Family and the Republicon corporatists. Get rid of the middle class and then have everyone work for military contractors or Wal-Mart type corporations as they take over the earth. Wheeeeee!

[ffoulkes-2009]

How about this is the fault of so many who decided to get loans they couldn't afford, then defaulted on them, causing banks to fail, causing businesses to close, causing more late payments than ever before. Take responsibility where it is due.

[wogerwabbit]

Who are you kidding ffoulkes-2009 July 7, 2009 7:54 PM PDT?

Money was FREE! Economic euphoria was the drug of choice. You want responsibility? Let's take a look at that dime bag of Bushit you sniffed up your nose and explain how fiscal conservatives ****** themselves to lobbyists and war profiteers and got us to where we are today. You may be blind to it, but it's what defines you republicans in America today. Sell outs. Traitors. ****** to the elite you grovel to and serve no matter how much it hurts your fellow Americans... you have yours and that's all that counts. Losers of elections from now to eternity. Good riddance... enjoy your obscurity.

[GiveMeFreedom]

I thought that change was coming to D.C.! I guess the change is less freedom, less money and less opportunity. Maybe Obama wants everyone to live like they are in Haiti.

Thank you Obama-ites.

[sjc_1]

You know this was caused by Bush ignoring his duties. When an incompetent ***** steals the White House, this is what occurs.