Dow Jones News -- Past Due Credit-Card Bills Reach Record in U.S. ..................................
September 29, 2005
Past Due Credit-Card Bills Reach Record in U.S.
By DEBORAH LAGOMARSINO
DOW JONES NEWSWIRES
WASHINGTON -- The number of people in the U.S. past due on their credit-card bills rose to a record in the second quarter of this year, the American Bankers Association said yesterday.
"The last two quarters have not been pretty," said James Chessen, ABA's chief economist.
"Gas prices are taking huge chunks out of wallets, leaving some individuals with little left to meet their financial obligations. With gas prices still rising, the third quarter is not likely to be any better," Mr. Chessen said.
A record 4.81% of credit-card accounts were past due in the second quarter, up from 4.76% in the first quarter.
When viewed as a percentage of total outstanding dollars, rather than number of accounts, the second-quarter credit-card delinquency rate was an unadjusted 3.6%, down from 3.76% in the first quarter.
Delinquency rates rose for nearly all of the eight types of consumer loans the ABA tracks.
Direct auto-loan delinquencies rose to 2.07% in the second quarter from 2.04% in the first quarter. For indirect auto loans, delinquencies rose to 2.08% in the second quarter from 1.87% in the first quarter.
Home-equity loan delinquencies rose to 2.75% of all loans in the second quarter, up from 2.61% in the first quarter, the ABA said. Past-due payments on home equity lines of credit, which is the lowest delinquency category, rose to 0.43% of all accounts in the second quarter, up from 0.40% in the first quarter.
The composite ratio of nonrevolving loans, such as auto and home-equity loans, rose to 2.22% of all loans in the second quarter from 2.03% in the first quarter. The ratio stood at 1.80% a year ago. The composite ratio tracks eight closed-end consumer installment loans, including personal, auto and home equity.
Write to Deborah Lagomarsino at deborah.lagomarsino@dowjones.com
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