CREDIT CARD DELINQUENCIES HIT RECORD HIGH

The number of past due credit card accounts reached a record high in the second quarter of 2005, the American Bankers Association reported.

Credit card delinquencies accounted for 4.81 percent of all credit card accounts between April and June of 2005. First-quarter delinquencies accounted for 4.76 of accounts. The ABA attributes the record number of delinquencies to rising gas prices.

In June 2005, the average price of a gallon of regular grade gas was $1.54. At the end of 2004, the price was $1.41.

“The first two quarters of 2005 have not been pretty” said ABA chief economist James Chessen. “Gas prices are taking huge chunks out of wallets, leaving some individuals with little left to meet their financial obligations. With gas prices still rising, the third and fourth quarters did not do any better.”

In November of 2005 the price of a gallon of regular gas was $2.80.

 


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