Consumer Payment Card News

Late Pays

It’s true – rising food and gas prices and little income growth has left many consumers with fewer resources to manage debt. Credit card delinquencies, based on total dollars outstanding, rose to its highest level in four years for a first quarter. Sequentially, delinquent dollars increased nine basis points and based on the number of past-due credit card accounts rose 13 basis points According to the American Bankers Association’s “Consumer Credit Delinquency Bulletin,” delinquencies based on total dollars outstanding for 1Q/08 were 4.59%, compared to 4.50% in the fourth quarter and 3.46% for 1Q/07. Based on the number of accounts past-due, the figures were 4.51% for 1Q/08, 4.38% for 4Q/07, and 4.41% one-year ago. The ABA also reported that the percentage of HELOC accounts that were more than 30 days past due rose 14 basis points to 1.10% during the first quarter (seasonally adjusted). This was the highest recorded rate for this category since 1997.

                   1Q CREDIT CARD DELINQUENCY HISTORY
                  (based on total dollars outstanding)
                              2000:   3.94%
                              2001:   4.13%
                              2002:   4.50%
                              2003:   4.51%
                              2004:   4.65%
                              2005:   3.76%
                              2006:   3.44%
                              2007:   3.46%
                              2008:   4.59%
                    Source: ABA Delinquency Bulletin

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