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Consumers have trouble paying bills and loans

By Times Staff Writer
In print: Thursday, July 3, 2008


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Feeling the squeeze? Consumers are having more trouble paying their home equity loans and credit card bills on time, the American Bankers Association reported Wednesday.

The percentage of home equity credit lines more than 30 days past due rose to 1.1 percent during the first quarter. Although that's still low, it's nearly twice the rate of a year ago.

"Faced with rising food and gas prices and little income growth, fewer resources have been available to manage debt," said the banking group's chief economist, James Chessen.

Delinquencies improved in a few categories, including traditional home equity loans taken out as a lump sum.

Late payments rose in five of eight categories that make up the trade group's composite of consumer loans. However, there was a lower delinquency rate for "indirect" auto loans arranged through dealerships, Chessen said.


Delinquency rates

Loan type 1Q rate Change*
Home equity credit line 1.1% + 0.14
Bank credit cards 4.51% + 0.13
Direct car 1.92% + 0.02
Mobile home 3.22% + 0.30
Boat 1.75% + 0.18
Home equity 2.34% – 0.05
Property improvement 1.78% – 0.03
Third-party car** 3.09% – 0.04

*In percentage points

**Loans made through dealers

Source: American Bankers Association


[Last modified: Jul 06, 2008 03:54 PM]



Comments on this article
by Ryan Jul 6, 2008 3:54 PM
Blame the Fed for printing to much money, devaluing all bills which causes inflation, and blame the government for decades of reckless spending that has created a 9 trill dollar debt, held by central banks across the world, how will we repay it?
by Hothead Jul 4, 2008 1:02 PM
- He's gotten WAY more than a lousy t-shirt. Plus golden parachutes for all his friends. Hope you can find something to be proud of this weekend... I'm having a hard time too with the Boy King laughing all the way to the bank.
by Johannes Jul 4, 2008 12:21 PM
The really interesting question is: I wonder if a plan stands behind this whole mess. Politicians have access to all the information they want. Nethertheless they have allowed and enhanced the mess via their laws, regulations and wars? WHY?
by john Jul 4, 2008 12:20 PM
The problem with this economy is that was have no accountability in the Fed and the consumer himself.
by jb Jul 3, 2008 1:57 PM
look ma, I bankrupt the country and all I got was this lousy t-shirt...
by jb Jul 3, 2008 1:52 PM
Thank You President Bush,we could not have lost everything with out you
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