Debt Delinquencies Still Growing
Even though across the United States the amount of consumer debt is
moderating, the amount of people not paying their bills has increased.
According to credit reports, more people are not paying their bills than
ever before, and the number of these delinquencies keeps rising.
Equifax, Inc. is one of the three big credit reporting agencies, and
they say that debt delinquencies are definitely on the rise. They report
that more than 12% of subprime credit card holders were 60 days or more
past due, which is up almost .5% from the previous month. Plus almost 4%
of subprime auto loan borrowers were at least 60 days past due as well.
But it gets worse, almost 6% of subprime mortgage holders were at least
30 days past due – as of last November, and the number has increased
since then.
Because of the increase in unemployment and gas prices, many are unable
to meet their bills any longer and are spending their money on
essentials such as food and electric. However, with this increase in
delinquencies, they have also seen an increase in debt consolidations.
With the debt consolidation they are able to take all of the credit card
debt, as well as quite often being able to add in the mortgage and car
loan as well, so that consumers are looking at one payment.
That one payment on their debt consolidation is significantly lower than
all of the payments on their other bills combined. Even just being able
to get a debt consolidation on their credit cards did wonders for the
financial well being of most customers.
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