The Check Spent a Lot of Time in the Mail in Early 2009

If the U.S. economy is on the mend, then a new report may be proof that the first months of this year were rock bottom. Consumers fell behind on credit card bills and home equity and car loans at a record pace in the first quarter of 2009.

The bad news comes in the latest Consumer Credit Delinquency Bulletin from the American Bankers Association. That report shows that a record 4.75 percent of all credit and bank card accounts were delinquent in 2009’s Q1, with the balances on those delinquent accounts reaching 6.6 percent of all outstanding credit/bank card debt, also a record. (Note: the ABA classifies a delinquency as a scheduled payment that is overdue by 30 days or more).

Here are some more details from the Consumer Credit Delinquency Bulletin, as set out in a News Release from the ABA:

As Reuters notes, the report shows that Americans still turn to high-interest credit cards as a temporary solution that can have long-lasting consequences: “more cardholders relied on plastic to meet day-to-day expenses” in early 2009, and meanwhile “U.S. consumers ended March with $939.6 billion of revolving credit outstanding.”

Things may not get much better until the job market rights itself. “Borrowers are struggling as the nation’s jobless rate sits at a 26-year high of 9.5 percent, with 6.5 million jobs having disappeared since the recession began in December 2007,” Reuters reports.

  • Consumer Delinquencies Rise Again in First Quarter 2009 (American Bankers Association)
  • Reuters: U.S. Consumers Fall Behind on Loans at Record Pace
  • You Can Get Out from Under Your Credit Card Debt (provided by Pelley Law Office, LLP)
  • Debt Relief Options (FindLaw)
  • Q&A: Credit Cards (FindLaw)
  • Should I File for Bankruptcy? (provided by Law Office of Henry Hernandez, P.A.)

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