Consumer Payment Card News

Adult Delinquency

There is nothing juvenile about it, there is a growing number of adult delinquents. The number of past-due credit card accounts hit an all-time high of 4.09% in the three-month period ending September 30th. Based on total dollars outstanding credit card delinquencies moved upward to 4.66% during the third quarter, a 15 basis point increase over the prior quarter, and a 21 basis point jump over year-ago quarter. The data are based on statistics gathered by the American Bankers Association for its quarterly “Consumer Credit Delinquency Bulletin,” and released this week The ABA says the job market has been flying against strong head winds, lengthening the time between jobs and intensifying financial stress. Meanwhile, the composite ratio of closed-end installment loans 30 days or more past due dropped 5 basis points to 2.13% of all accounts from the second quarter. Home equity loan delinquencies rose to 2.52% from 2Q/03’s 2.48%, based on the number of accounts.

3Q CREDIT CARD DELINQUENCY HISTORY
(based on total dollars outstanding)

2003: 4.66% 1999: 4.25% 1995: 4.21% 1991: 4.54% 1987: 3.72% 1983: 2.75%
2002: 4.45% 1998: 4.63% 1994: 2.90% 1990: 4.01% 1986: 4.90% 1982: 3.92%
2001: 4.45% 1997: 5.31% 1993: 3.83% 1989: 3.45% 1985: 3.15% 1981: 2.37%
2000: 3.93% 1996: 5.03% 1992: 4.27% 1988: 3.40% 1984: 3.30% 1980: 3.40%

Source: American Bankers Association Delinquency Bulletin

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