Bankruptcy

Credit card delinquency rate, debt levels up

By J. Michael McBride

The TransUnion Trend Data for the 2008 second quarter shows the credit card delinquency rates and average debt per borrower are up from this time last year. The figures are compiled from 27 million consumer reports sampled each month. Here is how the numbers break-down:

Average credit card delinquency: This is defined as the percentage of people at least 90 days delinquent on credit card payments.

Second quarter 2007 - 0.91%
First quarter 2008 - 1.19%
Second quarter 2008 - 1.04%

Ezra Becker, principal consultant in TransUnion's financial services group, believes the slight decline from 2008's first and second quarter were a reflection of tax returns and economic stimulus checks and that these rates tend to be seasonal. Combined with banks tightening their lending standards people are not getting those new credit cards or a credit limit increase.

Highest states were Nevada at 1.72% and Florida at 1.34% where the mortgage crisis has hit hardest. The lowest states were North Dakota at 0.59%, Vermont at 0.68%, and Utah at 0.70%.

Average debt per borrower:

Second quarter 2007 - $1,581
First quarter 2008 - $1,673
Second quarter 2008 - $1,717

Becker believes the reason for the 2.6% increase in first and second quarter this year and the 8.9% increase from this time last year is due to a slow economy and the increase in the price of gasoline.

Highest states were Alaska at $2,494, Tennessee at $2,109, and Alabama at $2,015. The lowest states were Iowa at $1,281, North Dakota at $1,318, and South Dakota at $1,388.

You can review the entire article at:
http://www.kansas.com/business/updates/story/530253.html

Chandra

Full post as published by Texas Lawyer Blog on September 18, 2008 (boomark / email).