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Wednesday, April 01, 2009

Moody's: Record High Credit Card Charge-Offs

by Calculated Risk on 4/01/2009 05:57:00 PM

From Reuters: Credit card charge-offs hit record high -Moody's (ht Brad)

Credit card write-downs soared to record levels in February, representing an all-time high in the 20-year history of the Moody's Credit Card Index ....

Credit card charge-offs, the write-down of uncollectable debt, advanced decisively to 8.82 percent in February, marking the sixth consecutive month of increases. The level, is more than 300 basis points higher than a year ago.
[Moody's] predicts the charge-off rate index will peak at about 10.5 percent in the first half of 2010, assuming a coincident unemployment rate peak at 10 percent.
Moody's reported the charge-off rate at 5.59% in February 2008, and 4.51% in February 2007.