Infographic: Credit card delinquencies on the decline
Delinquent payments on credit cards hit an 18-year low in
the third quarter of 2012, according to numbers from the American
Bankers Association (ABA). Credit card payments more than 30 days late fell
to 2.75 percent of all payments, a low not seen since 1994.
In the chart below, similar downward slides are evident in
auto loan delinquencies and delinquencies overall. It's the result of
recession-weary consumers trying to shed debt, said James Chessen, ABA's chief economist,
in a news
release.
"Consumers are paying close attention to their finances as
they continue to pay down debt in an uncertain economy," Chessen said.
"The conservative approach consumers have taken to credit over the last several
years has allowed them to better manage their debt and better position
themselves for the future."
Delinquencies on home equity loans are
the only ones on a rise. As with other types of loans, delinquecies on home equity loans spiked when the recession hit in 2008. Unlike other types of loans, though, the delinquency rates on home equity loans have not fallen back down.
See related: Life cycle of a delinquent credit card account
To use the graphic on your site, use the following code:
<center><a href="http://www.creditcards.com/credit-card-news/infographic-credit-card-defaults-decline-1701.php"><img alt="CreditCards.com infographic: Credit card delinquencies hit 18-year low" border="0" src="http://www.creditcards.com/credit-card-news/images/infographic-hist-data-sheet-3q-2012.jpg" /></a> </center>
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.