The TransUnion credit bureau has found that card delinquency across all card issuers is creeping higher.
The firm reported that bank card delinquency rate (the ratio of bank card borrowers 90 days or more delinquent on one or more of their bank cards) increased to 1.32% in the first quarter of 2009, up 9.10% over the previous quarter. Year-over-year, bankcard delinquencies increased 11.00% from 1.19% to 1.32%
Incidents of bank card delinquency were highest in Nevada (2.44%), followed closely by Florida (1.9%) and Arizona (1.68%). The lowest bank card delinquency rates were in North Dakota (0.73%), South Dakota (0.77%) and Alaska (0.77%). The District of Columbia saw a quarter-over-quarter drop of 11.8% in bank card delinquency.
Average bank card debt (defined as the aggregate balance on all bank-issued credit cards for an individual borrower) inched upward nationally 0.82% to $5,776 from the previous quarter's $5,729, and 4.09% compared to the first quarter of 2008, which totaled $5,548. The highest state average bank card debt remained in Alaska at $7,476, followed by Tennessee at $6,869 and Nevada at $6,677. The lowest average bank card debt was found in Iowa ($4,300), followed by North Dakota ($4,414) and West Virginia ($4,640).
"As expected, bank card delinquencies increased in the first quarter both as a national average and in most areas of the country," said Ezra Becker, director of consulting and strategy in TransUnion's financial services group. "As the recession entered its sixth quarter, we saw continued increases in average bankcard balances, as consumers struggled to meet repayment obligations in a job market that continues to deteriorate. This increase could be an indication that tax refund checks, typically used to pay down balances in during the first quarter in years past, are now being used to cover daily living expenses."
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