Credit Delinquency Rate Up in First Quarter

Washington, DC, July 7, 2011 -- Consumers found it more difficult to make payments on credit cards and other debts in the first quarter due to higher food and gas prices, according to the American Bankers Association.

ABA said its study showed a downturn from prior quarters and described the most recent quarter as a "soft patch."

"Consumers are feeling insecure about the economy and whether their financial resources can carry them through until conditions improve," ABA chief economist James Chessen said in a press release.

"With a slow-growing economy and weak job growth, there will continue to be financial stress that will make it hard for some people to pay their bills on time."

The delinquency rate on credit cards issued by banks increased to 3.4% in the first quarter from 3.28% in the previous three months.

A wider measure of consumer delinquencies that includes payments on auto and home equity loans also ticked up to 2.71% in the first quarter from 2.68% in the fourth quarter of 2010.

Delinquencies did decline in some categories. The rate on property improvement loans fell to 1.02% in the first quarter from 1.26% during the previous period.