Cash Strapped Consumers See Delinquencies Jump Across The Board

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Photo: rosengrant via flickr

Consumer delinquencies increased in nine of 11 categories tracked by the American Banker Association during the second quarter, pointing to a stagnant employment environment and volatile pricing for basics like food and gasoline.The ABA composite ratio, which culls data from eight closed-end loan categories, increased 17 basis points to 2.88, though still 12 basis points below the 3.00 score at the same point last year.

“Lackluster job creation, private sector uncertainty and public sector job cuts have stalled momentum and increased pressure on consumers as the economy struggles to find a way forward,” ABA Chief Economist Jim Chessen said.

Home equity loans were particularly hard hit, with 4.38% of lessees 30 days or more behind on payments.

Take a look at the full list:

Increased Delinquencies:

  • Personal loan delinquencies rose from  3.05% to 3.12%.
  • Direct auto loan delinquencies rose from 1.20% to 1.23%.
  • Indirect auto loan delinquencies rose from 2.72% to 2.89%. 
  • RV loan delinquencies rose from 1.26% to 1.42%.
  • Marine loan delinquencies rose from 1.76% to 1.83%.
  • Property improvement loan delinquencies rose from 1.02% to 1.07%.
  • Home equity loan delinquencies rose from 4.12% to 4.38%.
  • Home equity lines of credit delinquencies rose from 1.80% to 1.91%.
  • Non-card revolving loan delinquencies rose from 0.96% to 1.11%.

Decreased Delinquencies: 

  • Mobile home loan delinquencies fell from 3.74% to 3.62%.
  • Bank card delinquencies fell from 3.40% to 3.22%.

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