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Credit card delinquencies rose to 4.75% of total card loans during the first quarter ended March 31 from 4.52% the previous quarter, according to a report by the American Bankers Association. The credit card delinquency rate was 4.51% for the first quarter of 2008. The association's report defines delinquencies as payments 30 days past due. "The number one driver of delinquencies is job loss," James Chessen, ABA chief economist, said of the report's findings. "Delinquencies won't improve until companies start hiring again and we see a significant economic turnaround. However, many people are taking greater control of their finances by cutting spending, lowering debt and saving more money." The composite ratio, which tracks eight closed-end installment-loan categories such as credit card, auto and home-equity loans, remained virtually unchanged, increasing to 3.23% for the first quarter from 3.22% the previous quarter. The ratio was 2.62% for the first quarter 2008.
