Late loan (highest level in 15 years) payments, jobless claims climb

[Omaha Steve]

http://www.omaha.com/index.php?u_page=1208&u_sid=10300656

Late loan payments, jobless claims climb
BLOOMBERG NEWS

Consumers fell behind on car, credit-card and home-equity loans at the highest level in 15 years during the fourth quarter, another sign the U.S. economy is slowing, according to an American Bankers Association survey.

Payments at least 30 days past due increased across all eight categories of loans tracked, the Washington-based group said Thursday. Late loans climbed 21 basis points to 2.65 percent of all accounts in a consumer-loan index created by the group.

Meanwhile, the Labor Department reported that new applications for unemployment insurance climbed by a seasonally adjusted 38,000 to 407,000 for the week ending March 29. The increase left claims at their highest point since Sept. 17, 2005.

“The rise in consumer credit delinquencies is consistent with a rapidly slowing economy,’’ ABA chief economist James Chessen said. “Stress in the housing market still dominates the story, but it’s a broader tale.’’

Lenders, including American Express Co., the third-largest credit-card network, and Capital One Financial Corp., doubled reserves for soured U.S. debt in the fourth quarter. Overdue bank-card accounts reached 4.38 percent in the quarter, according to the ABA, as the slowing economy made it harder for consumers to repay debt.

The overall increase was driven by late payments for car loans, which make up two-thirds of all closed-end consumer installment loans, Chessen said. Auto loan delinquencies rose to 1.9 percent from 1.81 percent. Overdue mobile home payments rose to 2.92 percent from 2.87 percent.

[tbyg52]

1. K,R,&thanks for this post!

Edited to say that I don't mean "thanks for the bad news"...! ;)

I mean thanks for your labor in Labor! :thumbsup: