Just in Time for Christmas: Americans Face More Unpaid Credit Card Debt

Posted by: Desiree B. | Dec 24,2007

Just in time for Christmas, a news story was all over CNN this week detailing, what else, unpaid credit card bills. According to a story released by the Associated Press, many Americans are very late making their credit card payments, causing a sharp rise in defaults and delinquencies. The numbers increased the most for accounts that are 90 days past due. This can only lead to more problems, say financial experts.

 

Credit card accounts at least 30 days in arrears went up 26% in one year, totaling more than $17 billion in October at several large credit card trusts. Subsequently, defaults went up to $961 million in October. Lenders claim defaults when they write off debt they don’t believe will be repaid. In addition, many lenders reported large increases in the number of accounts that are at least 90 days in arrears. The lenders show a 50% increase in the number of accounts that are three months’ past due compared to one year ago.

 

Weakening job markets and mortgage problems contribute to the nation’s outstanding credit card debts. According to Capital One Financial Group, there are more defaults and delinquencies in areas like Florida and California, where residents have been hit hardest by mortgage problems.

 Compare rates for debt consolidation loans and home refinancing loans online at LowerMyBills.com. LowerMyBills.com lets you compare offers from multiple lenders to find the best deal for you. 

 

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