However, he has noticed fewer bankruptcies among his clients compared to years past and is seeing a greater effort to pay off debts. John Pelizzari, regional president for Old Kent Bank's Grand Traverse region, believes consumers in general are more responsible these days. Loan delinquencies are very low, he said. West Michigan tends to have more careful consumers, at least compared to the eastern half of the Lower Peninsula. People have some extra money to pay down debt.
Borrowing is still cheap and people can pay off debt relatively quickly.
The thing I fear is that it could all come to a screeching halt if the boom ends. The banking industry has become more cautious, pulling back from times when lenders pushed loans and credit cards at anyone with a heartbeat, Pelizzari said. We know in the banking business, if you are volume oriented, delinquencies go up. Meanwhile, the old remedy of clearing the credit slate by bankruptcy may become less attractive. This week the Senate is slated to resume debate on bipartisan legislation to make it harder for people to duck their debts.