Credit Card Delinquencies At Lowest Since 1990
Finally, some good news about Americans and the way we deal with money!
BY AMY HE
According to a new study conducted by the American Bankers Association (ABA), Americans are for the first time in two decades keeping up with their credit card payments.
ABA states that delinquencies are slowing down in 11 out of 13 loan categories, which include personal loans, direct and indirect auto loans, and credit cards.
In the first quarter of 2013, credit card delinquencies fell down from 2.47% to 2.41%, and ABA’s chief economist James Chessen “attributed the falling delinquencies to a steady improvement in the economy and improving financial health for consumers.” This percentage of credit card-related delinquencies is at its lowest since June 1990.
From ABA’s official statement:
continue reading »“Sharply lower delinquency levels reflect improving consumer balance sheets, steady job creation and a continuing increase in household wealth,” Chessen said. “Many consumers have learned the hard lessons of recession, and have redoubled their efforts to keep debt at manageable levels.”
Chessen believes that rising wealth and improving consumer confidence have played an important role in lower delinquency rates.
“Household net worth rebounded in the first quarter, rising above its pre-recession peak for the first time in over five years,” Chessen said. “Rising home and stock prices create a wealth effect that boosts consumer confidence, which contributes to healthier finances and a greater ability to pay down debt.”
