Bad Credit Card Debt At Banks

Data compiled by Veribanc, Inc. show that, while serious delinquencies at commercial banks have hovered around two percent of outstandings, quarterly chargeoffs have declined slightly over the past two years. Of course, delinquencies on credit cards were notably higher than on most other kinds of bank loans. Whereas serious delinquencies were about two percent for most of the period shown, the corresponding rate for all other kinds of bank loans was 0.9 percent. This difference helps to explain the difference in interest rates charged on credit card loans and the other bank loans.

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