Washington, D.C. (AHN) - Home equity credit line delinquencies hit an 11-year high in the first three months of 2008, the American Bankers Association said.
The increase in delinquencies was the result of a combination of several factors such as declining home equity and stock values, unemployment, soaring food, fuel and energy bills and slow income growth. As a result Americans struggled with which bills to give priority.
ABA said bank card delinquencies reached 4.51 percent in the first quarter of the year, up by 0.13 percent from the previous quarter. An increase in late payments on credit cards was also noticed by the ABA. The number of card accounts overdue by 30 days grew to 3.11 percent in the first quarter compared to 3.04 percent in the 4th quarter of 2007.
The recent tax stimulus checks boosted personal income, but the increases were eaten away by high gas and food prices, James Chessen, chief economist of the ABA, said in a statement.
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