Another sign that the US economy continues to drag itself along the bottom. With unemployment now set to go well beyond 10%, it's no surprise to read that US credit card delinquencies are up and now threatening to set new records.

According to Fitch's credit card performance index, the rate of credit card payments more than 60 days overdue rose to 4.41% in October from 4.22% in September. That's just below the record of 4.45% set in June.

And with economists warning that US unemployment will hit 13%, this is just the beginning. New records in credit card defaults will be set.

All this of course has profound implications for the health of credit card companies. We can expect some losses and perhaps even some downgrading of less diversified credit card companies like Capital One Financial Corporation, American Express Company and Discover Financial Services.

Until the unemployment crisis is fixed, that looks inevitable.