on July 22 evening news, Moody's Investors Services said Wednesday, the U.S. credit card default rate in June rose to an all-time high of 10.76 percent, and is likely to continue to rise until the middle of next year to.
Moody's Credit Card Index shows that in June the credit card default rate fell for the third consecutive month to 5.81 percent, a record so far this year, the lowest level. Moody's analysts said the decline in the index is mainly due to seasonal factors, such as personal income tax rebate. In addition, consumers have become more cautious, as well as the U.S. federal government through the economic stimulus plan to market a lot of money into the default rate also led to an important factor in the decline.
William Black Moody's analysts said in a statement: "If in the disappearance of the traditional seasonal factors, the credit card default rate continued to decline, then the default rate will follow a similar trend."
Under normal circumstances, the United States the trend of credit card default rates in line with the unemployment rate. According to previously released government report showed the U.S. unemployment rate in June rose to 9.5 percent, a record since 1983, the highest level.
Moody's said the U.S. unemployment rate is expected to be highest in 2010 at 10.5 percent of high-touch points, and credit card default rates are expected to touch on in the same period 13 percent to 12 percent range.
Jul. 23, 2009
