Delinquencies Rise on Major Consumer Loans

Washington, DC, January 3, 2008-- Late payments on auto, home improvement and some home equity loans, rose last summer to their highest level since 2001, according to the American Bankers Association.

The trade group said that the delinquency rate—payments at least 30 days past due— increased to 2.44 percent in the July-to-September quarter. That was up from 2.27 percent in the spring quarter and was the highest late-payment rate since the second quarter of 2001.

However, the delinquency rate on credit cards fell to 4.18 percent in the third quarter, down from 4.39 percent in the second quarter.

The association's quarterly survey of consumer loans painted a mixed picture of how people are managing their debt. It suggested that some people feel more squeezed than others.

Late payments on home equity credit rose to 0.84 percent in the third quarter, up from 0.77 percent in the previous quarter.