March 18th, 2010 by Alex Coté
Earlier this week, CNBC (via Reuters) published what looks to be great news when it comes to embattled consumers: Major credit card companies were reporting an improvement in delinquent payments. Simply put, their clients (aka The consumer), were suddenly paying their bills at a faster clip. And while reasons other than improved personal finances were floated (like the use of year-end bonuses to pay down debt), most reporters covering the story – and the companies reporting the good news – suggested this was indeed a sign of the long awaited consumer rebound.
Fast forward to today and Cortera’s related business view of debt and delinquencies – our Past Due by State Report – and the picture looks a little less rosy. Unless of course, you’re a business owner in Nevada.
According to our just published data, businesses in the top-ten most delinquent states look to be trending in the wrong direction, revealing a less than uniform impact of the supposedly improving economy. In fact, 9 of the top 10 most delinquent states showed delinquencies actually getting worse.
One of the nice exceptions is Nevada, far too long a poster child for delinquent businesses. As it turns out, Nevada businesses improved to the point that the state no longer makes the dubious top ten list. And that welcome surprise might be as much a sign of impending recovery as consumers suddenly finding the cash to pay down their personal debts.
So how is the recovery impacting debt, delinquencies and deadbeats in your neck of the woods? Is cash suddenly flowing quicker or is the stress still front and center? We’d love to hear from you.
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