My concern is many people are having financial difficulties. Personal savings rates are down. There is less of a buffer to fall back on.

What we're recommending is that people take out as much cash as they would need for a long weekend. And if you're relying on credit cards, request copies of your credit report before and after the century change so you can spot and correct any Y2K errors immediately.

What the delinquencies tell us is that there are more people who are under financial stress. The rise in energy prices is sucking up much more of households' budgets than they ever did.

The industry is very sensitive to the fact that delinquencies have risen over the last two years. They have already taken steps to tighten underwriting standards -- to stop solicitations to risky customers.

Continued strong economic growth and falling gas prices in the fourth quarter leaves me hopeful that delinquencies will continue to fall.

The rise in auto and other consumer loan delinquencies reflects the avalanche of layoffs over the past year and a half. Until job growth gains upward momentum, relatively high levels of delinquencies will remain.