Late payments on consumer loans at 16-year high

[DainBramaged]

More Americans have fallen behind on consumer loans than at any time in nearly 16 years, as credit problems once concentrated in mortgages spread into other forms of debt.
In a quarterly study, the American Bankers Association said the percentage of loans at least 30 days past due rose to 2.65% in the fourth quarter from 2.44% in the third quarter, and from 2.23% a year earlier.

The rate of delinquencies was the highest since a 2.75% rate in the first quarter of 1992. It provides a fresh sign the nation's economy is slowing, and may be in recession.

"There's no question that the economy is weakening beyond housing, resulting in the loss of household purchasing power," said John Lonski, chief economist at Moody's Investors Service.

"Deterioration of household credit should continue through 2008, though the rate may moderate," he added. "If it intensifies, then the current recession may prove more severe than anticipated."

http://www.usatoday.com/money/perfi/credit/2008-04-03-late-payments-loans_N.htm

[Systematic Chaos]

1. And the fun's just starting, IMO.

I really hope things don't get much worse, but all the time I spend reading through our SMW threads tells me otherwise. :(

[DJ13]

2. Well adjusting mortgages, credit cards @ 30% interest are bound to take their toll

The finance industry forgot that their customers arent a perpetual money machine that they could suck money out of without there being consequences.

Every % increase on one account is that much less money the borrower has to pay another account.