Delinquency Rate on Credit Cards Jumps
June 8, 2009 by Stephen Kersey
Filed under Business
According to a recent report, the delinquency rate on credit cards jumped more than 10% in the first quarter of 2009 when compared to the first quarter of 2008. The report, which was conducted by TransUnion, defines delinquency as credit cards that have had no payments for three or more months.
Credit Card Bill (Image: Flickr)
In 2008, the delinquency rate was around 1.2%. In 2009, that number jumped to more than 1.3%.
Well some industry observers were hoping for a decline on delinquency rates, this news doesn’t come to the surprise of most experts. With the national economic downturn yet to heal, consumers are struggling to make ends meet. When money runs out in a household, credit cards are usually one of the first items that go unpaid.
Compared to the foreclosure crisis, things are still relatively healthy in the credit card industry. That said, more and more credit card companies are looking at monetizing debit cards to offset loses elsewhere in their business models.
Credit card companies often have packages, promotions, and offers to increase your credit limits. If you already know you can’t handle your money wisely or if you’re in debt already, do not accept these offers.