NEW YORK, Oct 1 (Reuters) - U.S. consumer loans
delinquencies and credit card delinquencies rose to record
highs in the second quarter, as more Americans lost their jobs
and personal income shrank, the American Bankers Association
said on Thursday.
Fallout from a still deteriorating housing market caused
the rate of consumer loan payments at least 30 days late to
rise to 3.35 percent in the April-to-June period up from 3.23
percent in the first quarter.
Delinquencies were the highest since the ABA began tracking
the data in 1974.
Late payments on home equity borrowings set records, rising
to 4.01 percent from 3.52 percent on loans and to 1.92 percent
from 1.89 percent on lines of credit.
The overall delinquency rate actually understates consumer
pain because it excludes bank-issued credit cards, where credit
deterioration was severe.
The rate of credit card delinquent accounts rose to 5.01
percent from 4.75 percent, breaking the record of 4.81 percent
in the spring of 2005.
"Six consecutive quarters of job losses have taken their
toll," ABA Chief Economist James Chessen said in a statement.
"Falling behind on debt payments is an unfortunate side
effect of high unemployment and a frozen job market. The
picture won't change until the labor market improves and the
economy picks up steam. This is going to take time," Chessen
added.
The unemployment rate rose in August to 9.7 percent, its
highest level in 26 years. Analysts estimate unemployment will
rise above 10 percent in coming months.

posted by goon in INMKT on Oct 1 7:38am