CNN’s Money.com is reporting that even though Americans are missing payments on their home loans, they are still managing to pay their credit card bills on time, which means that the pressures of the housing market are not having as big as an effect as people might think.
NEW YORK (Reuters) -- Americans are missing more payments on home equity loans, but credit card delinquencies are holding steady, suggesting that housing pressures have yet to make it tougher for people in general to pay their bills.
In its quarterly study of U.S. consumer borrowing, the American Bankers Association said late payments on home equity loans rose to 1.92 percent from 1.79 percent in the third quarter, and were the highest since the first quarter of 2006. Late payments on some auto loans have hit a 5-1/2-year high.
The rate of credit card delinquencies edged down to 4.56 percent from the third quarter's 4.57 percent. That rate was the highest since the spring of 2005.
"We're certainly concerned to see the rise in home equity loan (delinquencies)," ABA Chief Economist James Chessen said in an interview. "The increase raises a caution flag, but the rate had been lower in 2006 than in the prior three years."
The ABA surveys more than 300 banks nationwide. It considers payments late if they are 30 or more days past due.
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