Friday, July 8, 2011

US delinquencies on credit cards, auto loans and home equity loans increase in 1Q 2011-Reuters

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7/7/11, "US consumer delinquencies tick up in first quarter," Reuters, D. Clarke

"Delinquencies probably will not drop soon -ABA"

"More U.S. consumers had trouble making payments on credit cards and other debts during the first three months of the year due to higher food and gas prices, an industry report said on Thursday.

The American Bankers Association said the data showed a downturn from prior quarters and described the most recent quarter as a "soft patch."...

The delinquency rate on credit cards issued by banks increased to 3.4 percent in the first quarter from 3.28 percent in the previous three months.

The ABA defines a delinquency as a payment that is 30 days or more overdue.

A broader measure of consumer delinquencies that includes payments on auto and home equity loans also ticked up.

This delinquency measure increased to 2.71 percent in the first quarter from 2.68 percent in the fourth quarter of 2010....

The economy grew by an an anemic 1.8 percent annualized rate in the first quarter and unemployment stands at 9.1 percent....

Until the economy begins growing more quickly, the ABA said it does not expect the consumer delinquency numbers to change much."...



via Lucianne.com

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