Delinquent Payments Fall to New Lows

   

Posted: Oct 18, 2010

A new report by the American Bankers Association says past-due credit card payments dropped from 3.88 percent to 3.62 percent during the first quarter of 2010, their lowest levels since 2001.

The ABA offered a number of theories to explain the findings, including unemployment and a lack of consumer spending.

Speaking to Bloomberg, ABA economist James Chessen said, "I think delinquencies will continue to improve but at a slower pace, reflecting a struggling economy."

The ABA uses data from banks to compile reports, covering categories that include credit cards as well as auto and home-equity loans.

Meanwhile, the Conference Board, a global, independent business membership and research association, reported that confidence among consumers has fallen to its lowest level in five months.

According to a recent poll by Harris Interactive that surveyed Americans about their spending habits, more than 60 percent of Americans expect to spend less on restaurants and entertainment.