Loan Delinquencies on the Rise

The auto loan company AmeriCredit saw their shares fall on Monday when they announced that their auto loan delinquency rates had increased. Their stock proceeded to slip 2.8% or 31 cents a share much to the chagrin of company officials. They have been trading between $2.85 and $14.94 over the past year, and had been showing an increase since the beginning of this year. However, this announcement put the auto loan company on the down side instead of up at the end of the day.

With the current economy it is tough for many people to make their bills and all of the auto loan companies are seeing this sort of increase in delinquencies. Experts say that until the economy truly rallies we are going to see delinquencies continue to rise in the auto loan and mortgage industries.

The auto loan company reported that the number of people who were 31-60 days behind on their car loans had increased 7.3% of their balances. This does not seem like a huge jump in terms of the fact that their balances were 7.19 in March, but when you are dealing with millions of dollars it is. They also saw their auto loan delinquencies of 61 days or older increase from 2.34% in March to 2.54% in April.

The auto loan company is hoping to rally from this and experts say that they should be just fine for now. They say that this is typical news for an auto loan financing company, and that they expect to see these kinds of figures across the board. They say that when faced with electric and food or their auto loan, people are going to choose not to pay their auto loan.





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