The recession and its widespread job losses caused a 32 basis point increase in loan delinquencies, according to data released today by the American Bankers Association.
The ABA found that 3.22% of loan accounts were delinquent, the highest since it began tracking such data since the 1970s.
Credit card delinquencies were 4.52%, an increase from 4.52% during the third quarter. The four-year average is 4.47%.
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"The wheels just fell off the economy in the fourth quarter of 2008," ABA Chief Economist James Chessen said in a statement. The amount of job losses dealt the economy a severe shock, and that continues to be the biggest drive for delinquencies.
Delinquencies, which the association as a payment that is overdue more than 30 days, increased in seven of the eight loan categories that it monitors.
The delinquency rate changes were: Home equity loans, 3.03%, up from 2.63%; property improvement loans, 1.75%, up from 1.63%; indirect auto loans, 3.53%, compared with 3.23% during the previous quarter; direct auto loans, 2.03%, up from 1.71%; marine loans, 2.35%, up from 1.82%; RV loans, 1.38%, compared with 1.27%; mobile home loans, 2.96%, down from 3.08%; and personal loans, 2.88%, compared with 2.69% during the previous quarter.
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