Credit Card Chargeoffs Continue to Rise

The year-over-year deterioration in credit card performance continues to worsen. According to Standard and Poor's Credit Card Quality Indexes, the chargeoff rate on its pool of $373 billion in credit card receivables in October 2001 was 6.8 percent, up 140 basis points from a year earlier. Delinquencies in the pool rose to 5.3 percent, up 70 basis points from one year earlier. Noting that the rate at which losses have increased has slowed in recent months, Standard and Poor's expects further deterioration as unemployment continues to rise into 2002.

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