US late payments at 16-year high

The housing slump

More Americans have fallen behind on consumer loans than at any time in almost 16 years, a study has warned, a sign that US credit woes are spreading.

The percentage of loans at least 30 days behind a due repayment rose to 2.65% in the last three months of 2007, said the American Bankers Association.

This was the highest level since it hit 2.75% in the first quarter of 1992.

Consumer loans include credit cards, car finance deals and funds borrowed against the value of homes.

John Lonski, chief economist at Moody's Investors Service, said the survey showed that the housing market slump and resulting bad mortgage debt were spreading.

"There's no question that the economy is weakening beyond housing, resulting in the loss of household purchasing power," he said.

"Deterioration of household credit should continue through 2008, though the rate may moderate."