Late Payments on Consumer Loans Climb to Highest Level Since `92, ABA Says

[Purveyor]

Source: Bloomberg News

April 3 (Bloomberg) -- Consumers fell behind on car, credit-card and home-equity loans at the highest level in 15 years during the fourth quarter, another sign the U.S. economy is slowing, according to an American Bankers Association survey.

Payments at least 30 days past due increased across all eight categories of loans tracked, the Washington-based group said today in a statement. Late loans climbed 21 basis points to 2.65 percent of all accounts in a consumer-loan index created by the group.

``It's an indication of the degree of stress consumers are facing right now,'' said Nigel Gault, director of U.S. research at Lexington, Massachusetts-based Global Insight Inc. ``People overextended themselves, they took out loans they thought weren't a problem as long as house prices kept rising.''

Lenders including American Express Co., the third-biggest credit-card network, and Capital One Financial Corp. doubled reserves for soured debt in the fourth quarter amid the worst housing slump in a quarter century. Overdue bank-card accounts reached 4.38 percent in the quarter, according to the ABA, as the slowing economy made it harder for consumers to repay debt.

The overall increase was driven by late payments for car loans, which make up two-thirds of all consumer loans with fixed balances, ABA chief economist James Chessen said in the statement. Auto loan delinquencies rose to 1.9 percent from 1.81 percent. Overdue mobile-home payments rose to 2.92 percent from 2.87 percent.


Read more: http://www.bloomberg.com/apps/news?pid=20601103&sid=aIjf7nleXUcY&refer=news

[onehandle]

1. I miss Bill Clinton.

It takes a Bush to do this to our country.

[Doctor_J]

2. Clinton the president. Clinton the campaigning spouse - not so much

He rescued the country from Bush the Not Quite As Stupid.

[Doctor_J]

3. Let's see. 92...92...What happened in 92

Of that's right. THAT generation of Bush family was destroying the country.