Delinquency rates increasing on credit cards, is this a ANTI GREEN SHOOT.
By Daniel at 24 October, 2009, 12:45 am
While the media is telling be may be seeing some signs of improvement in the economy, credit card companies are certainly not getting any benefit from the improvement. September delinquency rates increased at five of the six top credit card companies when compared to August rates, according the LowCards.com CEO Bill Hardekopf.
Bank of America has the highest annualized card write-offs (14.25% in September)
Capital One wrote off more in September than it did in August. Capital one wrote off 9.77% in September and wrote off 9.32% in August.
Citigroup wrote off 10.15% in September and 12.14% in August.
Discover wrote off 8.69% in September and 9.16% in August.
American Express wrote off 8.40% in September and 9% in August.
JPMorgan Chase had the lowest level of write-offs - 8.12% in September and 8.73% in August.
Clearly, the credit card companies are still feeling the pain of the economic downturn, but I do believe at least part of this pain is self inflicted. By raising interest rates so high, they threw a lot of people over the edge. Sure, people should not have gotten themselves in so deep with credit card debt, but knowing they were there the banks should instead be working with people to help them get their debts paid off.
- GOC
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