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Consumer credit delinquencies climb during third quarter

Jan 12, 2011 Brian Bradley

The rate of consumer credit delinquencies climbed during the third quarter of 2010, coinciding with stagnant job growth, according to new data from the American Bankers Association. Overall, delinquencies - which negatively affect consumer credit reports and consumer spending power - inched forward to 3.01 percent. A delinquency is recognized as a late payment 30 days past due. It was a marginal increase - just 0.01 percent from Q2 2010 - but showed that continued uncertainty in the labor market has caused consumers to become later on their payments. According to the ABA's Consumer Credit Delinquency Bulletin, the increase was largely due to home equity lines, auto loans and credit cards. "Consumer credit delinquencies are very much tied to what happens with jobs and what happens with income, and both of those stumbled in the third quarter," Chessen said. The percentage of delinquencies varied by nature. Auto loans climbed to 1.74 percent in Q3 2010 - up 0.07 percent. Indirect auto loans increased to 3.02 percent, home equity loans to 4.05 percent and personal loan delinquencies jumped to 3.68 percent - a 0.13 percent rise, the largest increase of all.