Credit-card delinquencies decline in first quarter
Credit card loan delinquencies declined in the first quarter of 2007, according to the latest American Bankers Association Consumer Credit Delinquency Bulletin, released July 3. Late payments on credit cards were 4.41 percent of all accounts in the first quarter, compared to 4.56 percent in the fourth quarter of 2006 (seasonally adjusted).
“The good news is that credit card delinquencies fell during the first quarter of 2007,” said ABA Chief Economist James Chessen in a news release. “The improvement in credit card late payments is somewhat remarkable, given that the economy was not operating on all cylinders.”
Chessen noted, however, that consumers’ overall financial positions were worsened by slow job growth, falling home prices and weak economic growth.
“There are still signs of consumer financial distress, which will continue throughout most of this year as the worst of the housing problem works its way through the economy,” Chessen said, referring to the sharp increase in the composite ratio, particularly for items directly related to housing.
The number of delinquent accounts in the composite ratio, which tracks eight closed-end installment loan categories, increased to 2.42 percent from 2.23 percent. This ratio moved upward for the past year, reaching levels not seen since 2001.
“The increase in the first quarter of 2007 was driven in part by double-digit increases in home-equity loan delinquencies,” Chessen said.
By ; SBJ Staff
Via : www.sbj.net
“The good news is that credit card delinquencies fell during the first quarter of 2007,” said ABA Chief Economist James Chessen in a news release. “The improvement in credit card late payments is somewhat remarkable, given that the economy was not operating on all cylinders.”
Chessen noted, however, that consumers’ overall financial positions were worsened by slow job growth, falling home prices and weak economic growth.
“There are still signs of consumer financial distress, which will continue throughout most of this year as the worst of the housing problem works its way through the economy,” Chessen said, referring to the sharp increase in the composite ratio, particularly for items directly related to housing.
The number of delinquent accounts in the composite ratio, which tracks eight closed-end installment loan categories, increased to 2.42 percent from 2.23 percent. This ratio moved upward for the past year, reaching levels not seen since 2001.
“The increase in the first quarter of 2007 was driven in part by double-digit increases in home-equity loan delinquencies,” Chessen said.
By ; SBJ Staff
Via : www.sbj.net
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