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Credit card delinquency rate rises
9/17/2008 5:31:57 PM
Gemma Roskell

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The second quarter of the year saw an increase in the number of consumers who were delinquent on their credit card payments, new figures show.

According to TransUnion LLC, 1.04 per cent of credit card holders were delinquent at least 90 days on one or more cards in the three months to July 30th, up from 0.91 per cent the previous quarter, the Associated Press reports.

The average debt per borrower also increased from quarter to quarter, from $1,673 to $1,717, an increase of 2.6 per cent, the credit reporting agency found.

Delinquency rates were highest in Nevada and Florida, where the housing market crisis has hit consumers the hardest, while credit card holders in Alaska and Tennessee had the highest debt levels.

Ezra Becker, principal consultant for TransUnion's financial services group, told the Associated Press that the rise in delinquency rates could be down to the increase in gasoline prices during the second quarter, as well as the slowing economy.

Meanwhile, a survey published this month by Rutgers University revealed that around one-third of working citizens owe more on their credit cards than they have in retirement savings.
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