Home equity and property improvement loan delinquencies rise

Texas Banking, February, 2008 by Anonymous

Credit card delinquencies continued to fall during the third quarter of 2007, according to the American Bankers Association's Consumer Credit Delinquency Bulletin. Late payments on credit cards fell 21 basis points to 4.18 percent of accounts in the third quarter (seasonally adjusted). The ABA report defines late payments as 30 days or more overdue.

"Credit card holders continued to improve on-time payments during the third quarter despite obvious stress in the housing market," said James Chessen, ABA chief economist. "Modest income and job growth helped ease consumers' financial stress even as they worried how to pay for the rising costs of gas, food, and energy."

The fact that credit card repayment rates continue to improve as mortgage repayments worsen may seem...