Credit card and home-equity delinquencies have soared to record levels as Americans struggle to cope with decreasing income, household wealth and collapsing investments, the American Bankers Association said on Tuesday.
Delinquencies on all consumer loans soared to 3.23 per cent of all accounts in the first three months of the year, raising them to highs not seen since 1980. Delinquencies on credit card soared to a record 6.60 per cent up from 5.52 per cent in the final quarter of 2008.
The American Bankers Association defines a delinquency payments that are more than 30 days late. ABA also noted that the continued rise in unemployment has been the main factor contributing to the rising delinquencies.
June saw 467,000 jobs lost, and the unemployment rate climb to 9.5 per cent, the highest level in over 25 years.
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