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Consumer loan delinquencies rise to record high

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Filed: Country: United Kingdom

The number of people delinquent on their loans rose to a record high in the first quarter,

according to the American Bankers Association.

The industry group blames the record wave of job losses as a major factor. More than

2 million Americans lost their jobs in the first three months of the year. Six million have

lost their jobs since the recession began.

“Delinquencies won’t improve until companies start hiring again and we see a significant

economic turnaround,” ABA chief economist James Chessen said in a news release.

The ABA defines delinquency as a payment that is 30 days or more overdue.

The composite delinquency rate among eight types of closed-end installment loan categories

rose to 3.23 percent of all accounts, from 3.22 percent in the previous quarter.

Bank card delinquencies rose to 4.75 percent of all accounts, from 4.52 percent in the

previous quarter. However, the balances on those delinquent accounts rose dramatically,

to 6.6 percent of the value of all outstanding bank card debt – marking a new record –

from 5.52 percent.

Chessen said the unemployed may be using bank cards to bridge a temporary income

gap, especially with less home equity to fall back on as housing prices continue to fall.

Among other delinquency rates:

  • Home equity loan delinquencies increased to 3.52 percent from 3.03 percent.
  • Property improvement loan delinquencies decreased to 1.46 percent from 1.75 percent.
  • Indirect auto loan delinquencies decreased to 3.42 percent from 3.53 percent.
  • Direct auto loan delinquencies increased to 3.01 percent from 2.03 percent.
  • Marine loan delinquencies decreased to 2.04 percent from 2.35 percent.
  • RV loan delinquencies increased to 1.52 percent from 1.38 percent.
  • Mobile home loan delinquencies increased to 3.7 percent from 2.96 percent.
  • Personal loan delinquencies increased to 3.47 percent from 2.88 percent.



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Filed: AOS (apr) Country: Philippines
Chessen said the unemployed may be using bank cards to bridge a temporary income

gap, especially with less home equity to fall back on as housing prices continue to fall.

I believe it. We're looking to buy a house and looked at a possible short sale house from the car for about 2 minutes. The owner (I guess) asked we were lost and I told him, "nope". He said, "You f'ing a-hole." It wasn't the best neighborhood either I was told later.

David & Lalai



Greencard Received Date: July 3, 2009

Lifting of Conditions : March 18, 2011

I-751 Application Sent: April 23, 2011

Biometrics: June 9, 2011

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