Debt delinquency refers to a situation where a person or entity fails to make timely payments on their debts. It means not paying back borrowed money on time, which can lead to financial difficulties and potential consequences such as additional fees, penalties, or legal actions.
Full definition
Prior to the Great Recession, credit card delinquency rates were consistently higher than any other form
of debt delinquency.
Student
loan debt delinquency rates have increased substantially during the same period (and delinquency rates for student loans are likely to understate effective delinquency rates because about half of these loans are currently in deferment, in grace periods or in forbearance and therefore temporarily not in the repayment cycle.
Not surprisingly, data released this month from the the Financial Industry Regulatory Authority's Investor Education Foundation, which seeks to promote financial literacy, reveal high school students who are required to take personal finance courses have better average credit scores and
lower debt delinquency rates as young adults.
Credit
card debt delinquency is sky rocketing to new levels with high unemployment continuing to sweep through the country, where debt relief is needed more than ever.
HUD's watchdog group is recommending an overhaul to FHA procedure, including developing a better method for
identifying debt delinquencies in order to prevent insuring FHA loans to ineligible borrowers in the future.
In addition, two broad measures of financial health —
debt delinquency rates and credit scores — showed short - lived and modest increases: The worst - flooded residents had 90 - day delinquency rates that were about 10 percent higher, relative to non-flooded residents, for the three months following Katrina.