The Joplin Globe, Joplin, MO

Business

July 3, 2012

Overdue bills on credit cards, consumer debt, drop to 2007 level

WASHINGTON — The portion of consumers with payments overdue on credit cards, auto loans and other debt dropped in the first three months of the year to the lowest level since 2007, according to the American Bankers Association.

Overall, the percentage of consumer loans that were at least 30 days overdue dropped to 2.35 percent in the January-through-March period, down from 2.49 percent in the last quarter of 2011. It was the best performance since the second quarter of 2007, and put consumer delinquencies below the 15-year average of 2.4 percent, the group said.

At the worst point during the Great Recession and its aftermath, about 3.35 percent of consumer loans were overdue.

“Consumers have done a remarkable job getting their finances under control,” said James Chessen, chief economist for the ABA. “Overall debt levels have declined dramatically, and savings continue to grow. This means many consumers have more capacity to absorb a financial shock, and that’s a good place to be.”

The group’s quarterly Consumer Credit Delinquency Bulletin tracks overdue payments in 11 categories. Ten of those categories showed improvements in the first quarter, which Chessen said was remarkable given the sharp increase in gas prices in the first three months of the year.

Consumers showed great improvement on credit card debt. The percentage of overdue credit card payments fell to 3.08 percent in the first quarter from 3.17 percent. It was the lowest level since 2001. In mid-2009, about 5 percent of all credit card accounts were delinquent.

Delinquencies rose only in home equity lines of credit, to 1.78 percent of all accounts from 1.69 percent in the previous quarter. Chessen attributed the increase to the continued fallout from the housing crisis.

“It will be many quarters before delinquencies on home equity loans get back to anything close to normal,” he said.

Chessen expects delinquency rates to continue to drop, but not as dramatically as in the past two quarters.

“We’ve moved back to historical norms now and further improvement could be hard to achieve,” he said. “The economy has slowed recently and uncertainty remains high.”

 

1
Text Only
Business
  • 3M plant expansion to create 22 jobs

    An $18.7 million expansion at the 3M manufacturing plant in Nevada will create 22 new jobs, a company official said Wednesday.

    April 23, 2014

  • Business US stocks edge lower after a six-day rally

    The stock market slipped Wednesday after rallying for six straight days as investors worked through another round of quarterly earnings reports from U.S. companies.

    April 23, 2014 1 Photo

  • Advocates vow to revive Navajo junk-food tax

    Facing a high prevalence of diabetes, many American Indian tribes are returning to their roots with community and home gardens, cooking classes that incorporate traditional foods, and running programs to encourage healthy lifestyles.

    April 23, 2014

  • Feds seek $211K in fines from Minn. company

    Federal safety regulators are proposing $211,000 in fines for a Minnesota agriculture company that authorities say repeatedly failed to make sure workers weren’t exposed grain dust hazards in Montana.

    April 23, 2014

  • GM, lawyers fight over bankruptcy protections

    General Motors Co. and a battalion of trial lawyers are preparing for an epic court fight over whether GM is liable for the sins of its corporate past.

    April 22, 2014

  • Comcast 1Q earns surge on upbeat NBC results

    Comcast Corp. said Tuesday that its first-quarter net income rose by 30 percent as ad revenue surged at broadcast network NBC, helped by the Winter Olympics in Sochi and Jimmy Fallon’s elevation as host of “The Tonight Show.”

    April 22, 2014

  • Valeant, Ackman make $45.6B Allergan bid

    Valeant Pharmaceuticals and activist investor Bill Ackman have unveiled details of their offer to buy Botox maker Allergan, proposing a cash-and-stock deal that could be worth about $45.6 billion.

    April 22, 2014

  • Novartis reshapes business with GSK, Lilly deals

    Swiss pharmaceutical firm Novartis AG launched a major overhaul of its business Tuesday, unveiling a series of multibillion-dollar deals with Britain’s GlaxoSmithKline PLC and the U.S.’s Eli Lilly & Co. that heralds more restructuring in the fast-changing industry.

    April 22, 2014

  • McDonald’s profit slips amid weak sales

    McDonald’s is fighting to hold onto customers in the U.S.

    April 22, 2014

  • Business Stocks edge higher amid earnings and deals

    Stock futures edged higher as more companies reported first quarter earnings.

    April 22, 2014 1 Photo

Poll

Missouri Gov. Jay Nixon said Tuesday that a tax cut approved by the Legislature could have a “cataclysmic” effect on state revenues to the tune of $4.8 billion. House Majority Leader John Diehl calls that “absurd.” Who do you believe?

A. Nixon
B. Diehl
     View Results
Facebook
Twitter Updates
Follow us on twitter
NDN Video
U.S. Paratroopers in Poland, Amid Ukraine Crisis US Reviews Clemency for Certain Inmates Raw: Violence Erupts in Rio Near Olympic Venue Raw: Deadly Bombing in Egypt Raw: What's Inside a Commercial Jet Wheel Well Raw: Obama Arrives in Japan for State Visit Raw: Anti-Obama Activists Fight Manila Police Motels Near Disney Fighting Homeless Problem Michigan Man Sees Thanks to 'bionic Eye' Obama to Oso: We'll Be Here As Long As It Takes Bon Jovi Helps Open Low-income Housing in Philly S.C. Man Apologizes for Naked Walk in Wal-Mart New Country Music Hall of Fame Inductees Named 'Piles' of Bodies in South Sudan Slaughter SCOTUS Hears Tv-over-Internet Case Chief Mate: Crew Told to Escape After Passengers