Loan delinquencies rise to record high - Charlotte Business Journal:

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The association cites the record wave of job lossesw as amajor factor. More than 2 million Americans lost their jobs in the firsr three months ofthe year. Six million have lost theirt jobs since the recession beganj inDecember 2007. “Delinquencies won’tr improve until companies start hiring again and we see a significantgeconomic turnaround,” ABA chief economist James Chesseb says. The ABA defines delinquenc y as a payment that is 30 days or more The composite delinquency rate among eight typeasof installment-loan categories rose to 3.23 percent of all accountsa from 3.22 percent in the previous quarter. Bank-card delinquencies rose to 4.75 percent of all accountz from 4.
52 percent in the previouas quarter. However, the balances on those delinquent accounts roseto 6.6 percent of the value of all outstandint bank-card debt — marking a new recorx — from 5.52 percent. Chessen says the unemployed may be usinyg bank cards to bridgw a temporaryincome gap, especially with less home equity to fall back on as housinh prices continue to fall. •Home-equity loan delinquencies increasedto 3.52 percent from 3.03 •Property-improvement loan delinquencies decreased to 1.46 percent from 1.75 •Mobile-home loan delinquencies increased to 3.7 percent from 2.96 and •Personal-loan delinquencies increased to 3.47 percent from 2.
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