Credit Card Debt Report
Credit Card Debt Statistics
According to Moody’s Investors Services, the U.S. Credit-card defaults rose to a record during the month of September and more losses lie ahead as delinquencies rose for the first time since March of this year.
What does that mean to you and me? We are not paying our bills on time in record numbers! Moody’s went on to say that write-offs, the things that credit card companies take when settling debt rose from 11.49 percent from 10.2 percent. The breakdown was as follows. Loans at least 30 days delinquent rose to 5.8 percent from 5.73 percent, a slight increase. “Early stage” debt, or loans overdue by 30 to 50 days, surged to 1.65 percent from 1.41 percent, signaling higher losses in the coming months.
Banks typically “write-off” bad debt at 6 months or 180 days. With unemployment at close to 9.7 percent, credit card issuers are struggling to make ends meet.
Moody’s says it expects the credit card sector will not see any recovery until mid-2010 when charge off peaks or unemployment reaches 10.5 percent.
While some say this recession is now behind us, these numbers would certainly not coincide with that thought. If 30-day and 30-59 day delinquencies continue to rise, it will only be a matter of time before the over 60 day delinquencies start to rise as well.
What does all mean to you and me. Well, for one, we are not paying off our debt. While that is happening, banks and creditors are racking up fees upon fees as well as raising interest rates, while at the same time lowering credit lines of individuals. The squeeze is on, and when that happens, and liquidity dries up, the last thing on your mind will be credit card bill.
If you like help with your credit card bills, give us a call today for a free, (800-890-6658) confidential and no obligation consultation on what you should be doing to help with your
credit card debt.
Comments
