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

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

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Updated: 01-22-2019