Consumers reportedly fell behind on credit card and loan payments in record numbers during the first quarter.
Press Release Service – Wired PR News – Consumer credit card and loan debt reportedly soared to record numbers during the first quarter. As reported by Reuters, information released by the American Bankers Association illustrated a significant increase in delinquencies on these kinds of debt payments.
ABA Chief Economist James Chessen is quoted by Reuters as stating of the issue, “The biggest driver is job losses… When people lose their jobs or work fewer hours, it makes it that much harder to meet their obligations. Unfortunately, we’re going to see higher job losses in the next year, and I expect elevated delinquencies.”
Chessen is further quoted as stating of increasing credit card debt, “Consumers tend to rely on credit cards as a bridge to cover their daily needs until they find new jobs…It’s taking longer to find those jobs.”
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