Delinquent loans hit record in 2008

WASHINGTON, April 6 (UPI) -- The number of U.S. consumers falling 30 days behind on their short-term loans rose to a record 4.2 percent in the fourth quarter, the U.S. Federal reserve said.

An additional 4 percent of consumer loans -- including credit card, home and car loans -- fell into default, a category that describes loans lenders have given up trying to recoup, USA Today reported Monday.

In March, the U.S. unemployment rate rose to 8.5 percent on the loss of 663,000 jobs, a sign that "the wheels have fallen off the economy," James Chessen, chief economist at the American Bankers Association, told the newspaper.

In effect, the consumers' tendency to let credit card debt slide before allowing themselves to fall behind on mortgage payments is now moot, economist Mark Zandi at Moody's Economy.com said.

"I don't think there's … any loan category that will avoid this storm," he said.