ABA: Home Equity Delinquencies Rise

The delinquency rate on credit card and home equity loans rose late last year, suggesting that consumer debt remains soft, according to the American Bankers Association.The ABA's quarterly Consumer Credit Delinquency Bulletin showed that the delinquency rate on closed-end home equity loans rose to 1.64% in the fourth quarter from 1.38% in the third. However, the delinquency rate on home equity lines of credit inched down 2 basis points to 0.56%. Home equity lines have the lowest delinquency rate of any consumer loan category tracked by the ABA. Meanwhile, credit card delinquencies, sometimes considered a harbinger of overall consumer credit quality, rose to a record 4.07%, the ABA said. The trade group can be found online at http://www.aba.com.