NEW YORK After falling for the previous twenty months, the rate at which customers made late payments to JPMorgan Chase increased during the month of September to 2.53 percent, up from 2.48 percent during the previous month. Many economists find the rate of late payments, also called delinquencies, the metric to watch when it comes to the possibility of future defaults.
While the new rate is still well below the peak rate of 4.91 percent initially reported in April of 2009, its still a concerning metric for Chase.
The default rate, however, fell to 4.13 percent, down from 4.67 percent the previous month, which hits another new low for the industry. The high was reached in January of 2010 when it peaked at 10.91 percent. A balance reaches the point of default if it is six months past due. Part of the reason the default rate has improved so much is because consumers are reducing the amount of debt they carry, which is now $790.1 billion.