Consumer Loan Delinquencies Increase
The American Bankers Association just reported that consumer loan delinquencies are continuing to increase, the product of more job losses across the country.
The fourth quarter delinquency rate: 3.22 percent. That's the highest recorded rate since the organization began tracking it in the 1970s. The delinquency rate was 2.90 during the third quarter.
The credit card delinquency rate, which isn't included in these numbers, was 4.52 in the fourth quarter.
“The wheels just fell off the economy in the fourth quarter of 2008,” said James Chessen, the ABA’s chief economist, according to the Associated Press. “The amount of job losses dealt the economy a severe shock, and that continues to be the biggest driver for delinquencies.”
-- Michael Rosenwald
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