The average American continues to struggle even with daily living. With unemployment and home foreclosures the largest threats, many are forced to make decisions between loans and necessities. That decision isn’t really a tough one.
Defaulting to loans and credit cards is a matter of survival these days. However, it’s the matter of paying back these loans that make life even worse for families. Delinquency is a growing norm among debtors.
The American Bankers Association report revealed that delinquencies on consumer debt has gone up by a record 3.23% in the first quarter continuing its upward trend from last year. The number of those at least a month behind of payments are at an all-time high since it began keeping track of trends.
The statistics are “a natural consequence of mounting job losses in a weakening economy,” ABA Chief Economist James Chessen said in a statement.
To make matters worse, financial companies have jacked up interest rates pending the implementation of the law that makes it difficult for them to raise rates starting August.
Source: CNN
