Errors look so very ugly in persons of small means one feels they are taking quite a liberty in going astray whereas people of fortune may naturally indulge in a few delinquencies.
Quotes about delinquencies (13 Quotes)
Bankruptcies are down, deposit growth and credit card income is strong, and delinquencies are down.
I think this is a harbinger of more problems to come, ... I think we should look for fresh new records in delinquencies in the fourth quarter and first quarter of next year as credit card payments rise higher and as energy prices really begin to bite.
We expect to see a modest rise in delinquencies in the quarters ahead.
We expect modest rises in delinquencies in the quarters ahead, particularly as related to Hurricane Katrina and its effect on the Gulf Coast.
What the delinquencies tell us is that there are more people who are under financial stress. The rise in energy prices is sucking up much more of households' budgets than they ever did.
The industry is very sensitive to the fact that delinquencies have risen over the last two years. They have already taken steps to tighten underwriting standards -- to stop solicitations to risky customers.
The historical low delinquency rate was 3.9 percent in the late 1970s, while the historical high for delinquencies was 6.07 percent in 1985. Right now it's right in the middle between the all-time low and the all-time high, and we're just coming out of a recession.
The rise in auto and other consumer loan delinquencies reflects the avalanche of layoffs over the past year and a half. Until job growth gains upward momentum, relatively high levels of delinquencies will remain.
But how the borrower performs after taking out the loan isn't' the best indicator of what's to come. The peak for delinquencies and defaults comes between years three and five.
It's not a matter that you're penalized if you're five minutes late with a payment and your interest rate doubles or triples. It involves delinquencies serious enough to show up on your credit report. It means the consumer is exhibiting riskier credit behavior.
Even if there's a pick-up today in job creation, we should not see a real improvement in delinquencies until later this year -- there's about a six- to nine-month lag. But I clearly believe the employment market plays a key factor in delinquencies.
The increase of delinquencies is not surprising. We have been expecting an up-tick in delinquencies due to a number of factors.