I read this article on Yahoo! Finance. It talks about how TransUnion the credit reporting agency in a recent study noticed “fundamental paradigm shift”.
Where Americans instead of paying their mortgage debt first, pay their credit card debt. According to the study in 2008, it was the opposite.
The article quotes Celia Chen of Mood’s Economy.com saying “They don’t see any value in putting money into an asset that has lost that much value and will probably never regain that value to offset the mortgages,”.
In the article Luke Mullins writes “First, credit cards can be used to pay for basic necessities, like food, gas, or clothes. And with the unemployment rate remaining near double digits, purchasing such items with credit has become more and more essential”.
Also in the article Keith Gumbinger of HSH.com says “It is hard to operate in our society without a credit card today,”.
Read about it more here.
Forget the Mortgage, I’m Paying My Credit Card Bill
The reason more folks are paying their credit card first is because the credit card collection agencies are getting more aggressive. If you miss a couple payments on your mortgage what does your mortgage people do, they send you a notice via the mail.
That’s a lot better than having to talk to someone and trying to explain why you missed a payment. No likes to tell anyone they’re failing.
If you are struggling with credit card debt, we can help.