Figure 35. Delinquency and charge-off rates for loans to households, by type of loan, 1990-2008.
Data are plotted as curves. There are two panels. In the top panel, the delinquency rate on credit card loans starts in 1991 at about 5.2 percent, falls steadily to about 3.2 percent in mid-1994, rises continuously to about 4.7 percent by early 1997, stays at around that level through early 2003, falls on balance to about 3.5 percent by the end of 2005, and then rises on balance over the next two years to about 4.6 percent by year-end 2007 and just above 5.5 percent by year-end 2008. The delinquency rate on other consumer loans starts in 1991 at about 3.5 percent, falls to about 2.4 percent by mid-1994, rises to about 3 percent by mid-1996, holds at about that level through the end of 2001, generally declines to about 2.1 percent in mid-2005, holds at about that level through mid-2006, then edges up to about 2.7 percent by the end of 2007 and about 3.2 percent by the end of 2008. In the bottom panel, the net charge-off rate on credit card loans begins in 1990 at about 3.2 percent, rises to about 5 percent in mid-1992, generally falls to about 3 percent by mid-1994, generally holds there until about mid-1995, rises almost continuously to about 5.5 percent in late 1997, generally declines to about 4.2 percent in mid-2000, moves up moderately in 2001, spikes to about 7.7 percent by early 2002, fluctuates between 5 and 6 percent for the rest of 2002 and 2003, falls to about 4.2 percent in mid-2005, spikes to about 5.9 percent at the end of 2005, drops to around 3 percent in early 2006, rises on balance to about 4.2 percent in the fourth quarter of 2007 and just above 6 percent in the fourth quarter of 2008. The net charge-off rate on other consumer loans begins in 1990 at about 1 percent, declines to about 0.5 percent by mid-1994, rises to about 1 percent by about mid-1997, holds at about that level through mid-2000, generally rises to about 1.5 percent by late 2001, holds at about that level through late 2004, spikes to 2 percent in the second half of 2005, falls to around 1 percent by the end of 2005, and rises steadily over the next three years to about 2.8 percent in the fourth quarter of 2008.
NOTE: The data are quarterly and seasonally adjusted; data for delinquencies begin in 1991. Delinquent loans are loans that are not accruing interest and those that are accruing interest but are more than 30 days past due. The delinquency rate is the end-of-period level of delinquent loans divided by the end-of-period level of outstanding loans. The net charge-off rate is the annualized amount of charge-offs over the period, net of recoveries, divided by the average level of outstanding loans over the period. For the computation of these rates, commercial real estate loans exclude loans not secured by real estate. Commercial real estate loans are measured as the sum of construction and land development loans secured by real estate; real estate loans secured by nonfarm nonresidential properties or by multifamily residential properties; and loans to finance commercial real estate, construction, and land development activities not secured by real estate.
