According to the Consumer Credit Delinquency Bulletin posted by the American Bankers Association, late credit card payments declined in the last quarter of 2005.
The number of credit card accounts 30 days or more past due decreased from 4.74% to 4.27% in the third quarter of 2005.
The improvement was attributed to job growth, lowering gas prices and new bankruptcy laws. The Oct. 12 deadline for filing bankruptcy under the old system had a close-out sale effect on filings, wiping clean credit card debt that would normally have been reported as delinquent in the fourth quarter.
The full financial effect of Katrina; however, is still unknown. Bankers are working to help customers regain their financial footing in the aftermath, and it may be months before the impact gives a clearer delinquency analysis.
The composite ratio of closed end installment loans fell from 2.17% to 2.02% accounts. This ratio tracks eight types of consumer loans:
Personal loan delinquencies dropped from 1.98% to 1.97%.
Direct auto loan delinquencies dropped from 1.81% to 1.72%.
Indirect auto loan delinquencies dropped from 2.25% to 2.13%
Recreational vehicle loan delinquencies remained at 0.90%
Boat loan delinquencies dropped from 1.08% to 1.01%.
Home equity loan delinquencies dropped from 2.33% to 2.07%.
Property improvement loan delinquencies dropped from 1.55% to 1.36%.
Mobile home loan delinquencies increased from 3.31% to 3.91%.
Past due payments on home equity lines of credit, the lowest delinquency rate category, increased from 0.45% to 0.51%.
Problems that can lead to late payments:
Paying only the minimum payment month after month
Constantly being out of cash
Being late on important payments, such as rent or mortgage
Taking longer and longer to pay off balances
Borrowing from one lender to pay another
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