Some bad news for you, it seems that delinquencies have risen again in the fourth quarter last year from the previous third quarter. At 4.6% this is the highest it has been since over 16 years ago, during the last major savings and loan problems.

In real estate delinquencies were over six percent in the fourth quarter up from 3 percent in the previous year.

What does this mean? People are falling behind on their housing loan payments! Their mortgages are in danger. While this statistic does not reflect the actual foreclosures or bankruptcies, this does indicate some of the things to come. Right? When people fall behind on their payments, that means their mortgages are in peril and what comes next? Foreclosures?

Truly a worrying statistic.

In other news, credit card problems rose from 4.8% in the third quarter to 5.6% in the fourth quarter and commercial real estate loans had problems at the 5.6% rate whereas it was only 4.8% in the previous quarter. Even businesses are having problems dealing with their mortgages.

Fortunately, with the incredibly low rates at the moment, refinancing is definitely an option for these institutions. By going for refinancing, they could save their home, their business location at the cost of extending their mortgage.

Delinquencies are now increasing faster than any other time in the past 23 years. Dangerous!

What does this mean for banks? It means they made more money off of finance charges. Up 1.9% and this is worth 35 billion dollars! They are really making money off of our loans. While we lose sleep over our home mortgages, while we think deeply about refinancing, they are now making more money off our problem.

Hopefully things become more positive this year. We have our fingers crossed and we are working hard. Let’s get to work people!!! And banks, make loans available to us! Lower interest rates I want to save my home.