More people paying credit card bills on time

Northwestern Financial Review, Aug 15-Aug 31, 2004

Fewer people were past due on their credit card bills in the first quarter of 2004, according to the American Bankers Association. Based on the number of credit card accounts, 4.21 percent were overdue in the first quarter after delinquencies reached an all-time high of 4.43 percent in the fourth quarter of 2003.

Based on total dollars outstanding, bank card delinquencies decreased to 4.65 percent in the first quarter from 4.92 percent in the previous quarter. "Meanwhile, consumer payments on installment loans has been impressive during the past two quarters," said ABA economist Jim Chessen. "We are back to levels we have not seen in nearly a decade." Chessen noted that job and income growth in 2003 and early 2004 are now starting to pay dividends. Since January, more than 1 million jobs have been created, and financial obligations relative to disposable income improved.