Both credit card and mortgage delinquencies are expected to drop next year. We have to ask ourselves why that is so.
One factor is an economy slightly improved over the days in 2007-08 when nearly 7 percent of mortgage holders and nearly 1.5 percent of credit card customers were delinquent on payments.
Analysts expect credit card delinquencies will drop to 0.69 percent early next year, with those substantially late on mortgages going down to about 5 percent.
While those numbers still reflect a need for improvement, The Mining Journal is pleased to report they are much better than during the depths of the recession.
Analysts attribute the improvements to a variety of factors. Lending institutions finally are making progress in clearing up risky mortgages.
And much tighter rules for credit card issuance means less borrowing by those who cannot afford to make monthly payments.
The financial world seems to be, slowly but surely, clearing up its own mess.
Certainly much work remains to be done. Let there be no doubt about that.
But progress is being made. And that has to be good news for the entire country.
The Mining Journal