The American Bankers Association said a seasonally-adjusted 4.4% of credit card payments were more than a month late in the final three months of 2003.

The surge was the result of high energy costs and slow job creation, leaving more Americans having trouble making ends meet, the ABA said.

But delinquency on other forms of debt actually declined, the survey showed.

Job fears

The reason for the divergence in payment delays on different forms of credit, the ABA said, was the use to which they are put.

The financial strain is increasing as the time between jobs continues to lengthen James Chessen, ABA

Delinquency on home and car loans, in general used for long-term planned borrowing, is down to 1.9%, the lowest level since early 1995.

But with credit cards handed out easily by financial institutions, the ABA said many people relied on cards to make it from one month to the next - particularly with pay flat and jobs hard to come by.

"The improving economy has not yet touched all individuals, particularly those who continue to look for work and may be relying on credit cards to meet their daily living expenses," said ABA chief economist James Chessen in a statement.

"The financial strain is increasing as the time between jobs continues to lengthen."

With economic growth strong, recent economic data has shown the jobless rate falling.

But job creation remains far below the levels necessary even to keep the employment market level, leading many economists to fear that the jobless rate is falling only because disillusioned people are taking themselves out of the job market.