Tough times for debtors
April 3rd, 2008, 2:57 pm · Post a Comment · posted by Edward Gately
Consumer credit delinquencies in the fourth quarter of 2007 reached their highest levels since 1992, and no improvement is expected for at least the first half of this year, according to the American Bankers Association’s Consumer Credit Delinquency Bulletin. The composite ratio, which tracks eight closed-end installment loan categories, rose 21 basis points to 2.65 percent of all accounts in the fourth quarter.
All eight loan categories experienced increased delinquencies, which means payments that are 30 days or more overdue. The association attributed the rise largely to auto loan delinquencies. In addition, the number of delinquent bank card accounts rose 20 basis points to 4.38 percent.
The weak housing market continues to be reflected in rising delinquency rates for home equity loans and lines of credit. Delinquencies for home equity lines of credit - the lowest delinquency rate category - rose 12 basis points to .96 percent.
For those having trouble paying down debts, the association offers the following advice:
* Talk with creditors. Hiding only makes the problem worse.
* Don’t charge more purchases until your problems are solved.