Continued Bankruptcies, Late Payments, Mortgage Delinquencies Kick Off 2009
March 9, 2009

The deteriorating economy is evident in recent consumer credit woes as bankruptcies, past-due credit card payments and delinquent mortgages are beginning to pile up according to a new report.
The latest Credit Trends Monitor Report from Equifax shows that last month consumers continued to drop behind in their credit card payments, the number of mortgage holders who were 30-days-past due was up by 50 percent since January 2008, and personal bankruptcies also increased significantly year-over-year.
To add to the economic woes, home equity line of credit 30-day delinquency rates also saw an accelerated month-to-month increase, rising 3.39 percent from December 2008 to January, the largest jump in 10 years.
Consumer bankruptcies continued to rise, with January 2009 figures 25 percent higher than January 2008. Most of the increase is in Chapter 7 filings, which is 37 percent higher than the same period last year. Those filing Chapter 13 increased only six percent. Chapter 7 is a liquidation proceeding in which a debtor receives a discharge of all debts while Chapter 13 is a reorganization bankruptcy enabling filers to pay off debt over a set period of years.
Projections indicate that 30-day mortgage delinquencies, which have continued to increase, will result in even more 60- and 90-day delinquencies.
Other highlights from the Credit Trends Report:
· Credit scores continue to decline indicating that future credit card use and payment capability could be negatively impacted.
· Home equity delinquencies (30-days past due) accelerated in January, increasing more than 48 percent from January 2008. Approximately 65 percent of the home equity delinquencies are in the South Atlantic and Pacific regions, reflecting two states - Florida and California—where the housing bubble was the greatest.
Data for the Credit Trends Monitor Report is sourced from Equifax's nearly 200 million files of U.S. consumers using credit.