New York - Borrowers fell behind on their car, home equity and home improvement loans in last three months of 2007 at a delinquency rate not hit since the early 1990s.

The American Bankers Association reported Thursday that late payments on a group of consumer loans increased to 2.65 percent in the October-December quarter, up from 2.44 percent in the July-September quarter. It was the highest level since the first quarter of 1992, when the economy had just emerged from a recession.

"The rise in consumer credit delinquencies is consistent with a rapidly slowing economy," James Chessen, the group's chief economist, said in a statement. "Stress in the housing market still dominates the story but it's a broader tale of an overall weak economy."

Payments are considered delinquent if they are 30 or more days past due. The survey is based on information supplied by more than 300 banks nationwide. Late payments increased across all eight loan categories surveyed by the bankers' association.

The rise in auto loan delinquencies underscored the economy's widening blow. The delinquency rate on "indirect" auto loans _ which are arranged through dealerships _ jumped in the fourth quarter to 3.13 percent, the highest figure on records going back to 1990.

Late payments on home equity lines of credit jumped to 0.96 percent in the fourth quarter, the highest rate since the second quarter of 1997. That was up from 0.84 percent in the third quarter.

The delinquency rate on home-equity loans in the fourth quarter rose to 2.39 percent, the highest since the second quarter of 2005.

A severe housing slump and weaker home values have clobbered some homeowners _ making it difficult, or even impossible, for some to pay their monthly mortgages or auto loan payments. In another bad sign for the economy, the Labor Department reported Thursday that number of new people signing up for unemployment benefits last week shot up to the highest level in more than two years.

When money is tight, borrowers are able to make minimum payments on their credit cards, but don't have that option with mortgages or auto loans, said Greg McBride, senior financial analyst for Bankrate.com."It's the loans with big payments that seem to be causing the biggest problems for consumers in distress," McBride said.

On Wednesday, a Keefe, Bruyette & Woods Inc. analyst said loans written off as not being repaid and delinquency rates across credit card issuers increased in February from January, according to an analysis of trends in credit card debt packaged into securities.

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