Consumers face challenges in handling debt

Rising rates, higher gasoline prices are putting a squeeze on budgets

NEW YORK – Rising interest rates and higher gasoline prices are putting the squeeze on consumers

An important measure of consumer financial distress, late payments on credit cards, ticked up in the first quarter, according to figures from the American Bankers Association. The Washington, D.C., based trade group said the percentage of bank cards 30 or more days past due increased to 4.40 percent in the January-March quarter from 4.27 percent in the final quarter of 2005.

The Federal Reserve