CNBC: Credit-Card Writeoffs Increase And Could Keep Getting Worse
By Daniel at 30 December, 2009, 10:57 am
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US credit card debts written off as uncollectable rose in November, following two consecutive months of decline, though early-stage delinquencies dropped for the month, Moody’s Investors Service said Tuesday.
Credit card charge-offs rose by about one-half percentage point in November to 10.56 percent, and is likely to continue to rise to a peak of between 12 percent and 13 percent in mid-2010, Moody’s said in a statement.
Delinquencies, which measure the proportion of accounts for which a monthly payment is more than 30 days late, also increased to 6.2 percent in November, though early-stage delinquencies fell to 1.6 percent for the month, Moody’s said.
“While this improvement is somewhat encouraging, the measure tends to experience some monthly volatility and we would not interpret the single month of improvement as evidence of any turn in consumer credit trends,” Moody’s analyst Jeffrey Hibbs said in the statement.
http://www.cnbc.com/id/34621258?__source=CNBC|newsnow|know1|2009
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