Consumers Fall Behind on Loans at Record Pace

Posted by Ray on July 7, 2009 under Main, Markets | Be the First to Comment

Another example of credit troubles that are plaguing our economy. This is why we need to get our act together and get a manufacturing base back to the US. Yes, we are the largest exporter of technology, weapons systems and large machines, i.e. excavators and dump trucks. However, we do not export hammers, nails or other useful products, China does.

Here is what the ABA, American Bankers Association, said about credit; “the rate of consumer loan payments at least 30 days late to rise to 3.23 percent in the January-to-March period from 3.22 percent in the 2008 fourth quarter, the American Bankers Association said. Credit Card swipe

Fallout from a still deteriorating housing market caused the rate of consumer loan payments at least 30 days late to rise to 3.23 percent in the January-to-March period from 3.22 percent in the 2008 fourth quarter, the American Bankers Association said.

Delinquencies were the highest since the ABA began tracking the data in 1974. Late payments on home equity borrowings set records, rising to 3.52 percent from 3.03 percent on loans and to 1.89 percent from 1.46 percent on lines of credit.

The overall delinquency rate actually understates consumer pain because it excludes bank-issued credit cards, where credit deterioration was severe.

Delinquencies on the value of all card debt soared to a record 6.60 percent from 5.52 percent in the fourth quarter.

The rate of delinquent accounts rose to 4.75 percent from 4.52 percent, near the record 4.81 percent in the spring of 2005.

U.S. consumers ended March with $939.6 billion of revolving credit outstanding, a rough approximation of credit card debt, according to Federal Reserve data.

Delinquencies rose to 3.01 percent from 2.03 percent on direct auto loans, to 3.70 percent from 2.96 percent on mobile home loans, to 3.47 percent from 2.88 percent on personal loans, and to 1.52 percent from 1.38 percent on recreational vehicle loans.

They fell to 3.42 percent from 3.53 percent on auto loans made through dealers, to 2.04 percent from 2.35 percent on marine loans, and to 1.46 percent from 1.75 percent on property improvement loans.”

Green shoot or just shit? You decide.