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.
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