ADVERTISEMENT

Credit card charge-offs, delinquencies hit all-time high

By Cara Henis

The second quarter of 2009 closed with the highest consumer credit card and residential real estate loan delinquency and charge-off rates since the Federal Reserve began tracking data on the subjects.

Credit card delinquencies, charge-offs hit record highs

Credit card delinquencies  -- where payments are more than 30 days late -- continued their upward trend, rising from 6.68 percent in the first quarter to 6.70 percent in the second quarter. Credit card charge-offs  -- accounts that the banks deem as uncollectable -- increased to a staggering 9.55 percent (up 1.91 percent since the first quarter of 2009).

Residential real estate loan delinquencies increased to 8.84 percent this month, up from last quarter's 7.85 percent.  Charge-offs also reached an all-time high of 2.34 percent. The health of commercial real estate loans is also declining, according to the Federal Reserve, reaching lows not seen since the early 1990s. The delinquency rate reached 7.91 percent this past quarter, yet the relatively low percentage of charge-offs means a host of nonperforming loans remain on the banks' books. 

The total delinquency rate for all loans and leases was 6.49 percent, the highest percentage since the Federal Reserve began tracking the trend. Total charge-offs reached 2.65 percent, also the highest percent ever recorded by the Reserve.

All figures are seasonally adjusted.

See related: Fitch: Card delinquencies rise; show signs of slowing, Credit card charge-offs, delinquencies break records again

Published: August 17, 2009


Join the discussion
We encourage an active and insightful conversation among our users. Please help us keep our community civil and respectful. For your safety, do not disclose confidential or personal information such as bank account numbers or social security numbers. Anything you post may be disclosed, published, transmitted or reused.

If you are commenting using a Facebook account, your profile information may be displayed with your comment depending on your privacy settings. By leaving the 'Post to Facebook' box selected, your comment will be published to your Facebook profile in addition to the space below.

The editorial content on CreditCards.com is not sponsored by any bank or credit card issuer. The journalists in the editorial department are separate from the company's business operations. The comments posted below are not provided, reviewed or approved by any company mentioned in our editorial content. Additionally, any companies mentioned in the content do not assume responsibility to ensure that all posts and/or questions are answered.




Follow Us


Updated: 12-11-2016


Weekly newsletter
Get the latest news, advice, articles and tips delivered to your inbox. It's FREE.


ADVERTISEMENT