Credit card default rates still rising to record levels
The Standard & Poor’s/Experian Consumer Credit Default Index
indicates that credit card default rates are still rising to record
levels. The default rate is now at 9.41
percent, the highest percentage recorded since the index began in 2004.
On a more positive note, as the unemployment numbers continue to improve, indices will begin to reflect an abatement of defaults. In fact, some indices are already beginning to show the rate slowing down. Naturally, there will be a lag in indicators as consumers get back to work and begin paying their bills.
Overall, the fact that default rates are so
high does not bode well for a speedy economic recovery, which will be fueled,
in large part, by a healthy and confident consumer.
Read more about the newest statistics as reported by The New York Times.