Credit Cards

Late Payments Down

WASHINGTON, D.C. (AP) — Late payments on credit card bills dipped in the second quarter, while delinquencies on home equity lines of credit climbed to a 5½-year high, painting a mixed picture of how people are managing their debt. The American Bankers Association, in its quarterly survey of consumer loans, reported Wednesday that late payments on credit card bills dropped to 4.39 percent in the April-to-June quarter.

That was down from 4.41 percent in the first quarter and was the lowest reading since the final quarter of 2005. The improvement, however, came before a credit crunch took a turn for the worse in August. Problems with subprime mortgages — made to people with spotty credit or low incomes — have rocked Wall Street in recent months.

Payments are considered delinquent if they are 30 or more days past due. The survey is based on information supplied by more than 300 banks.

Late payments on home equity lines of credit jumped to 0.77 percent. That was up from 0.60 percent in the first quarter and was the highest reading since the final quarter of 2001.