Collections Hit Record Highs
According to the Federal Reserve Bank of New York in its reporting for the Second Quarter of 2013, for the second straight quarter, close to 15% of consumers have an account being pursued by collectors. This is up from the 14.64% in the first quarter.
Another interesting statistic is that the amount that is being pursued was down from the previous quarter, which had a peak of $1,550.00 on average.
On the real estate front, mortgage delinquencies are down from 5.6% to 5.4% while credit card delinquencies are down from 10.6% to 10.2%.
With regard to credit cards, according to a report provided by Transunion, the percentage of delinquencies for credit cards dropped, as well as the outstanding amount owed 1.7% to an average credit card balance of $4,878.00. However, the Transunion report noted that traditional credit card delinquencies and balances decline during the first three months of the year as a result of people paying down their holiday shopping balances.
On the other side of the coin, Transunion reported an increase in the amount of new credit cards compared to the prior year dropped, however the amount of credit cards issued to non-prime higher risk origination’s [which are defined as credit scores lower than 700 on a scale of 501-990] was 28.14 %.
Based upon the number of new credit cards issued, Transunion is predicting an increase in the number of credit card delinquencies by 0.71% in the second quarter of 2013.
Contact a Bankruptcy Attorney
If you have a situation as we described in this article and have questions or concerns, please don’t hesitate to contact us to answer your bankruptcy legal questions.
Martella Law Firm
18501 Murdock Circle, Suite 304
Port Charlotte, FL 33948