Late credit card payments increased in fourth quarter

Northwestern Financial Review, Apr 15, 2001

According to the ABA, consumers are feeling the effect of a slowing economy and some have fallen behind on their credit card bills. The number of bills paid late in the fourth quarter increased to 3.34 percent compared to 3.21 percent in the previous quarter, and 3.22 percent a year earlier. Credit card delinquencies, or bills 30 days past due, also rose in the fourth quarter by roughly one quarter of one percent.

James Chessen, ABA chief economist, said during an economic slowdown consumers who carry high amounts of debt are most likely to be hit. Nonetheless, the delinquency rate remains within the past five-year average.