Percentage of Delinquent Credit Card Payments Increases

Percentage

of Delinquent Credit Card Payments Increases

Credit card holders had a tougher time making their payments

in the first quarter of 2006. According to the American Bankers

Association, 4.4% of credit card payments were delinquent in

the first quarter of 2006, up from 4.27 percent in the previous

quarter and the first increase since the second quarter of 2005.

In

this context, the ABA is reporting the percentage of payments

30 or more days past due, thus measuring seriously delinquent

accounts versus cardholders who missed a payment by a day or

two.

As

we reported

last week, the average fee for a late credit card payment

is $35, demonstrating how easy it is for delinquent accounts

to grow to proportions that make paying off the account even

harder.

Published 06/27/06 (Modified 05/07/12)