Credit card delinquency on the rise -- up 11%

[marmar]

from CNNMoney:



Credit card delinquency on the rise
Reporting agency says 11% increase could be an indication that tax refund checks are being used to cover daily living expenses.

By Julianne Pepitone, CNNMoney.com contributing writer
June 8, 2009: 10:11 AM ET


NEW YORK (CNNMoney.com) -- Credit card delinquency rates jumped 11% in the first quarter, possibly indicating that consumers are using tax refunds to pay day-to-day expenses, according to a credit reporting agency report released Monday.

The delinquency rate -- which is the ratio of borrowers 90 days or more delinquent on one or more of their credit cards -- increased to 1.32% in the first quarter of 2009.

That's up 9.1% over the previous quarter, and 11% over the previous year, according to the report from credit reporting agency TransUnion.

The average borrower debt rose 4.09% from the previous year to $5,729, TransUnion said. The agency uses data from 27 million anonymous, individual credit files.

"This increase could be an indication that tax refund checks, typically used to pay down balances in during the first quarter in years past, are now being used to cover daily living expenses," said Ezra Becker, of TransUnion's financial services group, in a written statement.

The economy is losing jobs by the thousands, and mass layoffs and pay cuts have continued the credit crunch. Banks have tightened lending standards because of a heightened default risk, providing less credit to consumers. .........(more)

The complete piece is at: http://money.cnn.com/2009/06/08/pf/credit_card_delinquency/index.htm?postversion=2009060810

[BurtWorm]

1. Horrors! People are choosing food over interest on credit card debt!

What is this country coming to?!

:patriot:

[dkf]

2. How do they jump from credit card delinquences to using

tax rebates for day to day expenses?

I don't get the connection.

[Statistical]

3. Lets keep it in context.

The delinquency rate -- which is the ratio of borrowers 90 days or more delinquent on one or more of their credit cards -- increased to 1.32% in the first quarter of 2009.

I am amazed it is that low.
So instead of 98.8% of account being current "only" 98.7% of account are current.

[DJ13]

4. Thats why those gangsters think they can continue increasing rates

But it wont last forever, then when their house of cards begin to collapse due to their own greed they will go crying to Obama that they need a bailout.

That day is closer than some think, as theres a new round of mortgage resets coming near the end of this year, and when that happens the CC delinquencies will begin to snowball.