Late payments for most consumer loans rose in the third quarter of 2006, according to the American Bankers Association’s (ABA) Consumer Credit Delinquency Bulletin. Credit card late payments increased to 4.57 percent in the third quarter, compared to 4.41 percent (seasonally adjusted) in the second quarter of 2006. However, credit card delinquencies improved from the third quarter of 2005, when late payments reached 4.74 percent.

James Chessen, ABA's chief economist, said, “With savings rates negative and home values stagnant, the spring has gone out of shock absorbers that handle life’s financial bumps in the road. Fortunately job and income growth remain strong and the stock market shows renewed strength.”

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Jackie