TransUnion: Consumers still likely to pay late

09.15.09
By Timothy Jones

Many Americans may still be struggling to repay credit card debt and keep their credit score on track, but in some areas of the country consumers are managing to get their financial situation under control.

That is the finding of the newest TransUnion Credit Risk Index, which measures the weighted average probability of consumers within a given region to pay at least 90 days late, relative to the country as a whole.

In other words, the index aims to identify which areas of the U.S. are most likely to demonstrate risky financial behavior and fall into delinquency. TransUnion says that in recent years, the overall index for the nation has generally ranged from 110 to 120.

During the second quarter of 2009, the U.S. index increased 0.83 percent to reach 128.32, reaching an all-time high on a national level for the third quarter in a row, the data reveals.

Still, 13 states were shown to have decreased their risk over the same period and the overall rate of growth slowed. TransUnion's Chet Wiermanski said these trends represent "a positive sign."

"After several quarters of significant increases in the Credit Risk Index, it appears that consumers are adapting their financial management approaches to cope with the difficult times we are experiencing," Wiermanski said.

On a regional basis, those states judged to be the riskiest include Mississippi, Nevada and Texas - all of which have credit risk scores above 162 when compared to the country as a whole.

Meanwhile, North Dakota (82.24), Minnesota (89.67) and Vermont (92.44) rank as the states in which residents are least likely to be 90 days late on payments.

In August, TransUnion released data showing that the national credit card delinquency rate had fallen by 1.17 percent during the second quarter of the year.

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In some U.S. regions, consumers are better managing their credit card debt.