We saw consumer credit delinquency decline in most of the categories that we track; this includes home equity and personal loans. We were very pleased that it was such a broad base improvement. This marks the third quarter in which we have seen improvement.
Los Angeles (Vocus) July 21, 2010
According to recent figures released by the American Bankers Association, credit card delinquency in recent months has dramatically declined. Morgan Drexen CEO Walter Ledda encourages Americans to continue to fight the war on debt.
While consumer debt continues to be a problem nationwide, credit card delinquency in the first quarter has vastly improved. It is the first time since 2002 that bank card delinquencies have fallen below 4%.
American Bankers Association economist James Chessen says, “ The improvements reflect concerted efforts by consumers to shore up their finances. It’s clear that the consumer sheets are improving.”
Morgan Drexen CEO Walter Ledda is thrilled that consumers are taking responsible actions to reduce their debt. He says, “ Debt is an on going problem in the United States, especially with the national unemployment rate over 10%. The fact that the consumers are using caution, is a big step in the right direction.”
Morgan Drexen provides proprietary software to attorneys who represent people in financial difficulties. These attorneys, throughout the nation help their clients avoid the stigma and adverse effects associated with bankruptcy. The integrated legal software and outsourced Legal Specialist services provide an automated process, which allows attorneys to spend much less time doing paperwork and more time with their clients.
Direct auto loans and personal loan delinquencies also fell for the third consecutive quarter. Home equity loans also took a dramatic fall from 4.32 to 4.12%.
Chessen says, “ We saw consumer credit delinquency decline in most of the categories that we track; this includes home equity and personal loans. We were very pleased that it was such a broad base improvement. This marks the third quarter in which we have seen improvement.”
Ledda adds, “Returning America to a standard of debt free living is exactly what the attorneys working with Morgan Drexen hope to achieve. We do that by providing specialized software to attorneys. This allows them to focus on using their professional judgment for their clients rather than routine paperwork.”
Despite the fact that regulators are warning banks to be cautious, there is statistical evidence showing, the overall risk in banks consumer loan portfolios is improving.
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