U.S. credit card defaults seen testing highs

[The Northerner]

Source: Reuters

Monday, 16 Nov 2009 06:26pm EST NEW YORK (Reuters) - U.S. credit card delinquencies rose in October, signaling that defaults may soon test record highs, as debt-burdened consumers keep losing their jobs, Fitch Ratings said on Wednesday.

The rate of credit card payments more than 60 days overdue -- an indicator of future defaults -- rose to 4.41 percent in October from 4.22 percent in September, just below the record high of 4.45 in June, according to Fitch's credit card performance index.

The rating agency said its credit card chargeoff index -- which measures loans that companies do not expect to be repaid -- fell to 10.09 percent in October from 10.75 percent in September. Delinquencies fell earlier this year thanks to tax refunds and stimulus actions.

The renewed upward trend in late payments suggests credit card chargeoffs will soon start to rise again.

Read more: http://www.reuters.com/article/gc04/idUSTRE5B13BM20091202

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Oh great! More green shoots are sprouting up.

It looks like it'll be an even longer road to recovery.

I hope that none of us end up this way.

[DJ13]

1. And Wall Street keeps going higher, claiming stores will have a good holiday

Suuuuuure they will.

[Double T]

2. The credit card industry ain't seen nothin' yet.

Criminal behavior and insatiable greed always get paid back.

[romana]

3. Yes

Exactly. Some of them are charging outrageous rates and will reap exactly what they sow.

[Wednesdays]

4. The dominoes are all lined up

And the first one's about to fall.