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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