People Missing Monthly Payments Again
Over the past few months, lenders were reporting positive trends. The rates for missed payments on mortgage, credit cards and other loans were declining continuously. The latest analysis indicates a shift in direction of mortgage payments, and industry experts claim it will be the same for credit cards and auto loans. In the last quart of 2013, mortgage payments that were delayed between 30 and 59 days had a greater share than the values recorded previously.
Considering the fourth quarter of the year 2012, there were over 2.05% mortgages that had been delayed by 30 days or more. At the end of 2013, this value was recorded at 2.13%. A closer look at the stats reveals that the rise in rates is a recent trend. The percentage of mortgage payments delayed by over 60 days is still lower than the figures of 2012, so it is only in the last month or so of 2013 that the trend has reversed.
Another survey conducted by FICO shows similar results. Of all the respondents who belonged to the banking and financial industry, 50% stated delinquency rates will rise, and will probably reach their highest ever values in the past 4 years.
A representative of a reputed lending agency told the press that a rise in delinquencies indicates that more people have gained credit access and so have taken loans. The risk levels associated with all these new loans must be monitored closely so that no severe consequences have to be borne. He added that if the delinquency rates continue to rise, most of the lenders will not be so keen to offer mortgages or any other loans, and will tighten their requirements.
Probably the best way to control the situation lies in the hands of the consumers. They should start paying their mortgage payments on time. As long as this is the case with you, it is fine, but if you are used to delaying payments, you are hurting your credit scores. Just one missed payment can bring your score down by 50 to 100 points, and if you miss more, your score will fall further down.
Try paying on time and get rid of your mortgage quickly. If the payments seem too large for you, consider refinancing, and take advice from a financial expert.
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