WASHINGTON (8/26/10)--In a Wednesday appearance on CNBC’s "Closing Bell," Credit Union National Association (CUNA) President/CEO Bill Cheney said that the underwriting practices and cooperative structure of credit unions result in lower delinquency and chargeoff rates among membership. “We do see consumers paying down debt, and there have certainly been chargeoffs on credit cards at credit unions,” Cheney said. “It does make some sense” to pay down debt, but only if you have the money available to do so, Cheney said.
While year-over-year chargeoff rates are up overall, recent trends have improved at credit unions, with declining delinquency rates in both credit cards and mortgages, Cheney said. Credit unions are “starting to see some improvement,” Cheney added. However, noting recent press reports that many are foregoing payments on their mortgages to pay off their credit card debt, Cheney recommended that those who are having trouble with their mortgage should first contact their lender. For the full interview, click on the image.