People Are Back To Making Late Payments On Their Credit Cards

Two months ago, the number of people making late credit card payments was at its lowest since Justin Bieber was a twinkle in his parents’ eyes. Of course, when you reach a low like that, there is often nowhere to go but up.

According to CNN, some of the major credit card companies in the U.S. experienced a small uptick in the number of credit card payments that were at least 30 days late in September.

For example, the delinquency rate for Capital One customers is up to 3.65% from its 3.32% low in May. American Express, Discover, Chase and Bank of America all saw very slight increases (ranging from .01% to .1%)

For the moment, these late payments haven’t translated into an increase in defaults, which actually decreased in September. But if the late payment trend — however slight — continues, one would expect some of these late-payers to end up in default.

Late credit card payments back on the rise [Chicago Tribune]

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  1. Blueskylaw says:

    So long sad times
    Go long bad times
    We are rid of you at last

    Howdy gay times
    Cloudy gray times
    You are now a thing of the past

    Happy days are here again
    The skies above are clear again
    So let’s sing a song of cheer again
    Happy days are here again

    Altogether shout it now
    There’s no one
    Who can doubt it now
    So let’s tell the world about it now
    Happy days are here again

    Your cares and troubles are gone
    There’ll be no more from now on
    From now on …

    Happy days are here again
    The skies above are clear again
    So, Let’s sing a song of cheer again

    Happy times
    Happy nights
    Happy days
    Are here again!

    • Straspey says:

      “Happy Days Are Here Again” is a song copyrighted in 1929 by Milton Ager (music) and Jack Yellen (lyrics) and published by EMI Robbins Catalog, Inc./Advanced Music Corp.

      The song was recorded by Leo Reisman and His Orchestra, with Lou Levin, vocal (November 1929), and was featured in the 1930 film Chasing Rainbows.

      The song concluded the picture, in what film historian Edwin Bradley described as a “pull-out-all-the-stops Technicolor finale, against a Great War Armistice show-within-a-show backdrop.”

      This early example of 2-strip Technicolor footage was, along with another Technicolor sequence, later cut from the 1931 re-edited release of the otherwise black-and-white film, and is believed to have been lost in the 1967 MGM Vault 7 fire.

      Today, the song is probably best remembered as the campaign song for Franklin Delano Roosevelt’s successful 1932 presidential campaign. Since Roosevelt’s use of the song, it has come to be recognized as the unofficial theme of the Democratic Party.

      The song is also associated with the Repeal of Prohibition, which occurred shortly after Roosevelt’s election.

      Matthew Greenwald described the song as “[a] true saloon standard, [and] a Tin Pan Alley standard, and had been sung by virtually every interpreter since the 1940s. In a way, it’s the pop version of Auld Lang Syne.”

      The song is #47 on the Recording Industry Association of America’s list of “Songs of the Century”.

      http://www.youtube.com/watch?v=gqsT4xnKZPg

  2. agent 47 says:

    Spendy spend spend spend SPEND SPEND SPEND SPEND SPEND SPEND!

  3. Dapper Dan says:

    I think people just felt bad about the credit companies having to change their policies due to new regulations. I doubt people use credit cards to buy more than they could afford!

  4. martyrd0m says:

    i think all the late payments are coming from the morons in new york protesting on wall street. since they arent working they dont have the money to pay for the new tents and cleaning supplies they bought.

  5. Sorta Kinda Lucky Soul says:

    But the recession is over, the economy is getting better, unemployment is going down, right?

  6. 420greg says:

    I think the card act will prevent the default rate from reaching all time highs.
    In the past, you miss one payment and BAM! you were at 29.99%. Some people saw this as impossible to get ahead and just stopped paying or filed BK.

    Since the card act they can not raise the rate on your current balances, so people can miss a payment with out it be so devastating, and get caught up the next month.

  7. lovemypets00 - You'll need to forgive me, my social filter has cracked. says:

    I wonder if this has to do with consumer spending being up in July?

    http://www.bloomberg.com/news/2011-08-29/consumer-spending-in-u-s-climbed-more-than-forecast-in-july-on-car-buying.html

    So, if consumer spending was up in July, and they spent money on buying cars, and used their credit cards to pay for other stuff, then those bills would have been due last month. Humm.

  8. Grabraham says:

    I am part of the .33% !

  9. Scamazon says:

    I think SNL did a skit on this. DONT BUY STUFF YOU CAN NOT AFFORD. Its a one page book!
    http://youtu.be/VL3KuaFvOSc

  10. AllanG54 says:

    Even if there are more defaults there would have to be a hell of a lot of them in order to offset the extra interest and $39 late payment fee the banks are charging.

  11. kataisa says:

    Are people making these late payments on purpose (which I doubt because everybody knows you’ll get whacked with higher rates and a big, fat $30 late payment fee) or did the credit cards suddenly change their due date to a Sunday?

  12. SilverBlade2k says:

    Will Americans never learn?… what do you think caused the economic downturn? And you’re doing the exact same thing, praying and hoping, God willing, that it won’t cause another downturn..?

  13. final_atom says:

    i only had 1 late payment in 14 years. it was about 2-3 days late; i total forgot about it. it didn’t affect my credit.

  14. smo0 says:

    One sentence.

    Unemployment is starting to run out.

  15. Press1forDialTone says:

    Let Bank of America close all your accounts and your credit card even though
    they are bluffing about the credit card. I had a card with them for years without
    any associated checking/savings account. After everything is moved to the credit
    union and you are happy (get a Credit Union branded credit card to replace the
    BofA one) then tell BofA, to just F*** off.