Late Credit Card Payments Up in 1st Quarter

Slightly more U.S. consumers were late in paying their credit card bills in the first quarter, although the amount of unpaid debt declined, the American Bankers Assn. said. The number of credit card accounts that were at least 30 days overdue increased to 3.58% of all accounts, up from 3.45% in the fourth quarter of 1998. That compares with a peak of 3.72% at the end of 1996. Based on the total dollar amount of outstanding credit card debt, delinquencies fell slightly in the first quarter to 4.44% from 4.62% in the 1998 fourth quarter. Emboldened by the strong job market, rising confidence in the economy and stock market gains, U.S. consumers have been gradually taking on more debt, ABA statistics show. Historically, as debt levels rise, so do delinquencies.