Miami, FL (PRWEB) April 12, 2011
Consumers are doing a better job paying their credit cards. According to http://www.credit-land.com/ micro-economic analysis of credit card industry, based on American Bankers Association Bulletin Report and a mix of economic indicators, bank-issued credit card delinquencies in the last quarter of 2010 dropped to the lowest rate since the first quarter of 2001. Home loan delinquencies were unchanged or fell in all but one category.
Credit Card Delinquencies
In April 2011, the delinquency rate on credit cards fell to its lowest level in nearly 10 years. Primarily, this is attributed to a recovering economy by the end of 2010, which put consumers in a situation where they could keep up on their credit card payments. Falling unemployment was also a factor. For the first time in two years, the unemployment rate dropped to 8.8% as 216,000 positions were added to the job market.
The fourth quarter of 2010 had credit card delinquency rates of 3.28%, down from 3.64% in the third quarter.
Consumers with home equity loans had a delinquency rate of 4.05%, unchanged from the previous quarter. Home equity lines of credit fell to 1.73% from 1.74%. The only type of home loan that saw an increase in the number of delinquencies was home improvement loans. Approximately 1.26% of these loans were delinquent by the end of last year, up from 1.23% in the previous quarter.
With credit card delinquencies and most home loan delinquencies falling, it is an indicator that things are looking up. The economic situation is starting to brighten once again. Individual consumers and households are regaining control of their finances, going back to work and managing their money better than they were during the tough times and the debt binge that led to them.
For more information or to schedule an interview please contact Inna Galagan.