Thursday, April 02, 2009

Consumers go into the Tank on all Fronts

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% in the October-to-December period from 2.9% in the prior quarter.

Home equity loan delinquencies rose 40 basis points to 3.03 percent of accounts, setting a new record. Home equity lines of credit delinquencies also reached a new record, rising 31 basis points to 1.46 percent. Every category saw rising delinquencies except mobile home loans. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

Credit card delinquencies also increased from 4.20 percent to 4.52 percent but still remain near the four year average of 4.47 percent. Chessen says the ability of card holders to adjust their monthly payments – unlike other loans with fixed payments – has helped keep credit card delinquencies relatively stable.
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The fourth quarter composite ratio is made up of the following closed-end loans. All figures are seasonally adjusted based upon the number of accounts.
  • Home equity loan delinquencies increased from 2.63 percent to 3.03 percent.
  • Property improvement loan delinquencies increased from 1.63 percent to 1.75 percent.
  • Indirect auto loan delinquencies increased from 3.25 percent to 3.53 percent.
  • Direct auto loan delinquencies increased from 1.71 percent to 2.03 percent.
  • Marine loan delinquencies increased from 1.82 percent to 2.35 percent.
  • RV loan delinquencies increased from 1.27 percent to 1.38 percent.
  • Mobile home delinquencies decreased from 3.08 percent to 2.96 percent.
  • Personal loan delinquencies increased from 2.69 percent to 2.88 percent.

Sources: Consumer loan delinquencies hit record high


Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 500 articles with more than 11,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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