This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Credit Card Delinquencies Rise Due to Holiday Spending

NEW YORK ( TheStreet) -- An increase in holiday spending drove up late credit card payments during the fourth quarter of 2012.

The credit card delinquency rate, which represents the percentage of credit card customers that are at least 90 days overdue on their payments, increased to 0.85% in the fourth quarter from 0.78% a year earlier, according to numbers from credit agency TransUnion. That translates into a 9% increase in late payments from the year before.

The delinquency rate during those last three months of 2012 was also a 13% increase from the the third quarter of the year, when the rate was 0.75%.

TransUnion predicts that if the economy continues at the pace seen last month, credit card delinquency rates will drop slightly, to 0.81% for the first three months of this year. This doesn't factor in the possible impact of higher payroll taxes or delayed tax refunds. If consumers have less income or delayed tax refunds, they have less money to pay down credit card debt, and credit card delinquency could increase.

While late payments increased, the average amount of debt charged by borrowers declined. Average credit card debt per borrower was $5,122, dropping 1.6% from the fourth quarter of 2011. This was up 2.5% from the third quarter of 2012, though.

Bill Hardekopf is chief executive of LowCards.com, which compares and rates more than 1,000 credit cards. He is the co-author of "The Credit Card Guidebook."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%
TSLA $218.42 0.00%
YHOO $44.52 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs