Credit card delinquencies still rising
Credit card delinquencies continued to rise in the first quarter of 2009, according to the latest data. The Wall Street Journal reports (subscription required) that "For the first three months of the year, the delinquency rate in the U.S. rose to 1.32% for consumers who were three months or more behind payments on their cards, up 11% from 1.19%
By a year earlier, according to a report published Monday by credit-reporting bureau TransUnion LLC. The delinquency rate for the first quarter jumped 9.1% from the previous quarter.
Particularly troubling is the fact that the delinquency rate appears to have continued its ascent even as tax-refund checks were mailed -- suggesting that many Americans were so strapped for cash that they couldn't use the refund checks to pay down debt as they have in years past.
On the other side, Fitch Ratings reports (subscription required) that credit card delinquencies pulled back a bit in May following four straight months of new record highs.
Transunion doesn't expect credit card delinquencies to peak until late 2010 or 2011.
And here's the worst part: Now that the United States government has a major stake in many of the largest banks, we lose on both ends. As the credit card industry charges off bad debts, guess who's footing the bill? We are.
Reader Comments (Page 1 of 1)
6-10-2009 @ 4:36PM
Esteban said...
If you feel you can´t trust yourself with your credit cards you might be better off cutting up your cards and living purely on ready cash, living within your means takes discipline initially but is both rewarding and beneficial to your health. http://cards-with-bad-credit.com
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6-15-2009 @ 1:26PM
zurich ranger said...
We're all getting sick of hearing about credit reports and fico scores, the country is in a mess. Pres. Obama needs to change the manner in which the credit bureaus are now dealing with the unemployed, financially ruined. Many did not abuse cc'ds but rather had to "live" on them as they lost their jobs, their retirement, their health insurance. when a physician or hospital won't treat u unless u pay cash or hand them a credit card, what would u do? Or if ur out of medication, have emergency, or a child is ill, what choice does one have. Credit card co. raised interest rates so much, even on good paying customers that people are just sick of getting screwed by these greedy sob's, when they're getting all the help. And YES many of us had emergency funds, but it doesn't take long for medical expenses or other emergencies to eat that up. omg, u now need at least a five yr emergency fund. no one ever knew we'd be in this mess. Well , I guess we should have known,with greedy, criminals in the white house for the last eight yrs.
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6-22-2009 @ 11:14PM
TeacherTeacher said...
If your banks are being sneaky and charging you for ridiculous things, then you should close your account. Americans are so passive. Stop putting up with this abusive behavior by banks and close your accounts. Banks will push you as far as you can go and they do, because they know you are passive and will pay the fees. Americans are teaching banks how to treat them! And, the same goes with credit card companies. Americans are so in fear that their precious credit scores will go down if they close an account, that they just put up with the abuse. If your credit card company is abusive and/or unethical then close your account! Stop being so fearful. We have become slaves to banks and credit card companies. How sad.
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