Late payments begins with credit cards.

The service for studies of BBVA's Bulletin published yesterday Consumption Situation in assuring that in Spain the consumer credit delinquencies "remained stable at levels close to 2% of the loan investment." This means that, of total consumer credit granted, 2% fall in arrears (when there is a delay in the payment of more than 90 days). It also means that defaults are growing at the same pace as the new loans (20%). However, according to BBVA, the future economic slowdown and rising interest rates "could drive up the bad debt ratio of consumption", although not so sharply.

In this sense, the rising defaults on the cards could be taking the first wake-up call. The number of cards in arrears rose in November 2005, after buying summer, and in March 2006, after spending Christmas. The analysis provided by BBVA part of the registry data from defaulting on Asnef-Equifax, the largest of Spain, which provide data to more than 270 entities (virtually all financial institutions and supermarkets) and has registered 2 5 million transactions in the amount of delinquent 7175 million euros in the period from January 2005 to June 2006.
According Asnef-Equifax, in mid-2006, the index cards in arrears has grown 12% over January 2005. In the same period, the number of consumer loans in arrears has risen 10% and car-in-particular has remained stable. Meanwhile, the rate of mortgages in arrears has fallen almost 15%. This development enables BBVA to talk about a rebound in arrears on the cards.

Partly obviously better to lose your credit card to the house

Written by Carlos Lopez on November 15, 2006 with 12 comments
Read more articles on Euribor.