U.S. Consumer Loan Delinquencies Highest On Record

[Purveyor]

Source: Reuters

NEW YORK, April 2 (Reuters) - More U.S. consumers have fallen behind on loan payments than ever before, and the problem may worsen as millions more find themselves out of a job, a study released Thursday shows.

According to the American Bankers Association, which represents most large U.S. banks and credit card companies, the percentage of consumer loans at least 30 days late rose to a seasonally adjusted 3.22 percent in the October-to-December period from 2.9 percent in the prior quarter.

The ABA said the fourth-quarter rate was the highest since it began tracking the data in 1974, with delinquencies rising in nearly every category. It said these credit trends are unlikely to improve before 2010.

"Job losses have really hurt the economy and will continue to inflict pain for several months," James Chessen, the ABA's chief economist, said in an interview. "The greater the losses are, the more severe an impact it has on all credit markets."

The ABA study covers direct auto, indirect auto, closed-end home equity, home improvement, marine, mobile home, personal, and recreational vehicle loans. It excludes bank credit card and education loans.

Read more: http://www.reuters.com/article/governmentFilingsNews/idUSN0254256920090402

[rfranklin]

1. No problem, issue more credit...

The credit default swaps will remove the risk. We don't need no stinkin' jobs.

[EC]

2. We should get a bail-out too,

let American families pick one debt-holder we could write-off and have the government pick up the bill. Maybe make a limit of up to $5000. or allow the $5000. to be applied to loans, credit card debts or mortgages....

[Supersedeas]

3. the banks invested our old payments in Campaign contributions

[wartrace]

4. How about a 5k check to every taxpayer?

Debt or no debt. If you paid taxes last year you get a check.

[melm00se]

5. where's the money going to come from?

plus, what good does it do to give folks money if all they are going to do is salt the $$$ away in savings accounts (what they did with the last stimulus check) or pay down existing debt?

[wartrace]

6. The same place the bank bailout money came from.....

...thin air.

[bemildred]

7. This is the new normal.

Get used to it. You can't get blood out of a turnip, and it's futile to try. Either give the people good jobs or deal with the fact they can't pay their debts.