A record wave of job losses is being cited as a major factor in a record rate of consumer delinquencies in the first quarter of 2009, according to the American Bankers Association's Consumer Credit Delinquency Bulletin.

The ratio which tracks delinquencies in eight closed-end installment loan categories rose to 3.23 percent of all accounts compared to 3.22 percent of all accounts in the previous quarter. Delinquent balances on those accounts also rose from 3.16 percent to 3.35 percent of total balances due. The ABA report defines a delinquency as a late payment that is 30 days or more overdue.

"The number one driver of delinquencies is job loss," said ABA Chief Economist James Chessen. "When people lose their jobs, they can't pay their bills. Delinquencies won't improve until companies start hiring again and we see a significant economic turnaround."

Chessen added that job growth is not likely to improve in the foreseeable future, though he did note that many people are taking greater control of their finances by cutting spending, lowering debt and saving more money.

Charts describing the worsening trends for consumer financing are on the ABA Web site.

For homeowners having trouble paying their mortgage, ABA strongly recommends they call 1-888-995-HOPE or reach out on the Web to HOPE NOW, a cooperative effort between counselors, investors and lenders.

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