Consumers Fall Behind on Loans at Record Pace

CNBC ^ | 7/7/2009 | Staff

[Red in Blue PA]

Soaring U.S. unemployment and a shrinking economy drove delinquencies on credit card debt and home equity loans to all-time highs in the first quarter as a record number of cash-strapped consumers fell behind on their bills.

Delinquencies on the value of all card debt soared to a record 6.60 percent from 5.52 percent in the fourth quarter as more cardholders relied on plastic to meet day-to-day expenses, the American Bankers Association said.

Late payments on home equity loans rose to 3.52 percent from 3.03 percent, and on home equity lines of credit climbed to 1.89 percent from 1.46 percent.

A broader gauge showing late payments on eight categories of loans rose for a fourth straight quarter to a new record, edging up to 3.23 percent from 3.22 percent. That rate actually understates consumer pain because it excludes credit cards. The ABA tracks loan payments that are at least 30 days late.

[rabscuttle385]

*Ping!*

[Oldeconomybuyer]

Good thing the Kenyan will save 150,000 jobs this year. /moonbat

[Always Right]

[cranked]

To Barry and many of his flunky economists, “the stimulus has done its job.”

Mark up one for good ole Barry....

[dfwgator]

[Wolfie]

Well, we certainly can’t let the credit card companies go under. Get ready for another bailout.

[moose2004]

But, but, but it’s not his fault, he was given incomplete information during the transition, it’s that damn Bush’s fault. (incredibly large sarcasm alert)

[Hattie]

Don’t worry. Obama will fix it. Just hope for change.

[Signalman]

By the time of the next Presidential election, this country will be in an economic depression. Now one would think that this would insure the Kenyan’s defeat. But then I think about FDR. He was re-elected in 1936 and 1940. So one never knows.

[GOPJ]

But, but, but I thought there were green shoots everywhere...