Credit Card Delinquency Rates Up 11% From Last Year

Jun. 8, 2009:

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.

Read the whole story: Jun. 8, 2009

Comments

[obamabiden2011]

Total credit market debt as a percentage of GDP has risen from 130% of GDP in 1952 to 350% of GDP today. The various bailout and stimulus schemes enacted in the last year will drive this percentage above 400% in the near future. When a country allows this much debt to accumulate versus its GDP, they have done something seriously wrong. The country’s politicians, business leaders, and citizens have all contributed to this disaster.

good articles..­. http://kl.am/tsc recommended reading

[rughead23]

Maybe if the credit card companies weren't in the business of predatory lending and pushing their product on the likes of naive first generation college graduates without finance education they wouldn't have a need for aound the clock debt collection services. Usury is also coming back to bite them in the buts.

[rkimball]

the banks doubled my credit card interest rates, added new fees & tacked on new penalties & i have an a one credit rating. it's a good thing i have no ballances on any of them. the bank's greed will cause more people to become delinquent in near future if they are maxed out on all their credit cards. the banks will once again be forced to penalize their best customers.

[roudy]

The delinquency rate is only 1.32%. That tells me there is no real problem here at all. Any local bank, even during good economic times, has a greater delinquency rate than this. This is a big fuss over nothing.

[basenji]

This is what the "moral hazard" is all about. When Wall Street passes 7 Trillion of losses to the taxpayer (Fed has taken in 2 Trillion worth of worthless paper at PAR and they want another 3 Trillion, add the TARP and the rest of the stimulus caused by their LOOTING), people figure why should they pay their obligation. People who have CC debt or loans will all file for bankruptcy, plus you have the Commercial Real estate debts that won't be paid back and Student loans. By the time this is over, we will be no better than Afghanistan and NOBODY is in JAIL and we still have ZERO regulation.

And please don't tell me it's the borrower's fault. If a bum asks you for 5k loan for a business he is going to start, would you hand the money even if he is telling you he will pay it back with 10% interest rate? No, because it's your money. These bastards were playing with OUR money.

[banker67]

Assume I pay $100 in income taxes. Assume further that those 100 dollars are immediately handed over to the CEO of Bank of America because he and his cronies just didn't feel like repaying the debts they personally authorized knowingly and with deliberation in the form of never-to-be collected loans.
Assume I also owe BOA $100 in credit card debt. I signed on saying I would pay that debt.
But the CEO of BOA also signed on to pay his firm's debts.
He does not have to pay the debts he signed for.
I do.
Worse, I must pay the same debt twice: once as my check for 'taxes," and then again as my check to BOA for the credit card account.
No matter what you call these payments, I pay $200 and the Bank of America gains $200 -- to understate that firm's profit by an order of magnitude.
Please explain to me the reasoning that so munificently rewards all BOA executives for their near-criminal activities, yet stentoriously demands that I ( and millions of card holders) go bankrupt trying to pay off the very same scheming weasels.
I really want to know how any sane person can justify such blatant, unrepentant theft of my money as well as all the money in the U.S. Treasury.
BB in NY

[vooter]

Don't pay your credit-card bills. Companies get to write off their losses all the time--why can't individuals? Tell them you're not going to pay....

[Furby]

Excellent idea, especially if coupled with other practical strategies such as buying a tent, a sleeping, a tarp (pardon the pun), and acquiring a shopping cart at your nearest supermarket with which to carry your valuables from squat to squat.

[dillydawg]

If it were that simple. You can try to reduce your interest, penalities etc. but stating your not going to pay, good luck with that one. collectors are vicious.

[vooter]

You can easily find out where collectors live....

[gfs5541]

That's not good advice, particulary if it screws up your credit rating. However, if ya'll don't care about that . . . .

[davidwayneosedach]

Those poor banks. Geithner will have to give them some more bailout money. They don't have to pay it back.

[myarmsaregreen]

The obama economy.

[TJCole]

As we are trying to bail out the banks and stimulate the economy the corrupt credit card companies are Constricting It, with their predatory usurious crippling excessive rates...

[sexyrexy]

exactly..

surprise.. surprise?? not!!

what did they expect?? serves them right.. after all those tagged on insurance charges they added on every month-- let the insurance pay for it.

[Furby]

They figure that if people are dumb enough to overextend themselves, they're probably dumb enough to think that 20% is the best rate they can get. And it's working.

[MaidinMossyCreek]

The next big mess.