Consumers Are Paying Their Credit Cards At The... - Other News


ADVERTISING DISCLOSURE: is an independent, advertising-supported web site. receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Consumers Are Paying Their Credit Cards At The Expense of Their Mortgages

Consumers Are Paying Their Credit Cards At The Expense of Their Mortgages

Consumers Are Paying Their Credit Cards At The Expense of Their Mortgages
The content is accurate at the time of publication and is subject to change.

Given these tough economic times, many consumers are being forced to prioritize their bill payments because they simply don`t have the means to meet all of their financial obligations. In the past, Americans tended to favor making mortgage payments at the expense of their credit cards, preferring to protect their house payments while allowing credit card accounts to slip into delinquency. However, ever since 2008, that trend has reversed.

The Atlanta Journal-Constitution reports that according to Charlie Wise, TransUnion`s research and consulting director, consumers are evaluating their assets and protecting the ones that best provide them with what they need to weather the nation-wide economic downturn. And that asset is, according to Wise, not necessarily their home but their credit card, which affords them some flexibility financially.

In 2008, the percentage of consumers current on their credit card payments but late with their mortgage payments was 4.3% in contrast to 7.4% in 2010. The percentage of people delinquent with their credit card payments but up-to-date with their mortgages dropped to 3% in 2010 from 4.1% in 2008.

This attitude shift is not really all that shocking, according to foreclosure expert Dan Immergluck. He claims that many of the individuals undergoing foreclosure come to realize and accept the fact that they are losing their homes, which inspires them to do what it takes to preserve any financial tools that remain. The fact is that many people who find themselves in deep financial trouble rely upon their credit cards to live on which makes them an important lifeline for survival.

However, a recent Fannie Mae survey of homeowners reveals that expectations of seeing any increase in home values are low, but overall consumers still place value on home ownership.

The amount of credit card accounts in delinquency by 90 days or more dropped to the lowest point in over a decade earlier this year to 0.6%. TransUnion predicts that rate to fall near 0.7% for the year and remain stable throughout 2012.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

Holiday Shopping is Trending

Posted: December 11, 2018

Shopping is definitely in style this holiday season with consumers, according to the new TD Bank Holiday Retail Report, on average they will be spending $530 on gifts. What are the trending gift-giving categories this season? Gift cards ... Continue reading
Some Upgrades Coming for American Express Business Platinum Cardholders

Posted: December 10, 2018

In 2019 people with the Business Platinum Card will be able to take advantage of some upgrades arriving with the new year. These new benefits are designed to boost productivity, as well as give cardholders more perks when traveling for ... Continue reading
New CENTURION Lounges in London and Charlotte

Posted: December 7, 2018

Travelers who pass through Heathrow airport when heading to London and Charlotte Douglas International Airport in North Carolina may well be happy to learn that American Express is opening new Centurion Lounges in both these airports. ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, and more up to the quarterly maximum, each time you activate.
For Excellent, Good Credit
INTRO OFFER: Discover will match ALL the Miles you've earned at the end of your first year, automatically. For example, if you earn 30,000 Miles, you get 60,000 Miles. That's $600 towards travel!
For Excellent, Good Credit
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!