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FRIDAY, NOVEMBER 27, 2009
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4

More Americans Falling Behind on Loans

Balances surge on bank credit-cards as Americans struggle to pay bills

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(Newser) – Delinquencies on consumer and home-equity loans rose in the first quarter as unemployed Americans struggled to pay their bills, the Wall Street Journal reports. The number of borrowers at least 30 days late on their consumer loans, which include auto loans, rose slightly to 3.23% from the previous quarter. Delinquencies on home-equity loans rose about half a point to a record 3.52%.

Evidence suggests that consumers are using bank-issued credit cards to plug gaps in their budget: Delinquencies on such cards rose to 4.75% from 4.52% in the previous quarter, while the balances on those cards surged 1.08 percentage points to a record 6.6% of total credit-card debt. "The No. 1 driver of delinquencies is job loss," said a top economist with the American Bankers Association. “Delinquencies won't improve until companies start hiring again.”

Signs advertising bad-credit auto loans are seen in the windows of a vehicle dealership in Mountain View, Calif., bad grammar and all.
Signs advertising bad-credit auto loans are seen in the windows of a vehicle dealership in Mountain View, Calif., bad grammar and all.   (AP Photo/Paul Sakuma)
Signs advertising bad-credit auto loans are seen in the windows of a vehicle dealership in Mountain View, Calif., bad grammar and all.
Signs advertising bad-credit auto loans are seen in the windows of a vehicle dealership in Mountain View, Calif., bad grammar and all.   (AP Photo/Paul Sakuma)
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4 comments
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BrittanyM
Jul 7, 09 4:27 PM CDT
Love the bad grammar in the pic. "Your an idiot." Reply
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+7
IN RESPONSE:
Deebles
Jul 7, 09 5:55 PM CDT
You're right. That's sad.
Vote up! Vote down!
+2
SBS
Jul 7, 09 4:49 PM CDT
Not good when people start using credit cards to pay debt. I realize that they may feel it is the only option but it's going from the frying pan to the fire. Reply
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+2
doingtherightthing
Jul 8, 09 12:31 AM CDT
the real problem is Obama and his policies. What stimulus? What job? Yep, you idiots voted for him, you get what you vote for in the end.........this is how socialism works: You own nothing. The government owns everything. Class 101 is over now........... Reply
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