| October 2, 2009

Delinquencies on credit card debt see record high

Credit card debt was a continued problem for consumers during the second quarter.

The American Bankers Association (ABA) reported that bank card delinquencies rose by 0.26 percentage points and now account for 5.01 percent of all card accounts, which is a record amount. James Chessen, chief economist for the ABA, noted that high unemployment was one of the major causes for the rise in delinquencies.

“Falling behind on debt payments is an unfortunate side effect of high unemployment and a frozen job market,” Chessen said.

People are cash-strapped and have been using credit cards to pay for household goods on a daily basis, according to counselors at the nonprofit Consolidated Credit. The experts worry that credit card charge offs will start to catch up with mortgage charge offs. The combination of job losses, wages not keeping up with inflation, increasing bankruptcies, and the housing crisis continues to make things difficult for Americans.

Chessen noted that until unemployment decreases and the economy improves, the outlook for credit delinquencies will continue to mirror recent trends. According to the Bureau of Labor Statistics, roughly 963,000 jobs were lost between the second and third quarters of this year, indicating the delinquencies could continue to be a problem.

Delinquencies in home equity loans also saw a record high for the second quarter. Home equity loans in delinquency increased 0.49 percentage points and account for a little more than 4 percent of all home equity loans.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

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Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

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