Credit card delinquencies, based on total dollars outstanding, dipped to its lowest level in more than fifteen years for a fourth quarter period. Sequentially, delinquent dollars slipped 53 basis points largely due to the recent change in the bankruptcy law. The number of past-due credit card accounts also dropped. According to the American Bankers Association’s “Consumer Credit Delinquency Bulletin,” delinquencies based on total dollars outstanding for 4Q/05 were 3.21%, compared to 3.74% in the third quarter and 4.19% for 4Q/04. Based on the number of accounts past-due, the figures were 4.27% for 4Q/05, 4.74% for 3Q/05, and 4.20% one-year ago. The ABA says the Oct 12th 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.
4Q CREDIT CARD DELINQUENCY HISTORY
(based on total dollars outstanding)
Source: ABA Delinquency Bulletin