As the U.S. economy continues to struggle, consumers are being forced to choose whether to pay their mortgages or their credit card bills. According to a new study by TransUnion, a credit management company, consumers are increasingly choosing to pay their credit cards before they pay their mortgages.
In the last quarter of 2010, 7.24 percent of homeowners were delinquent on their mortgages, but current on their credit cards. Only three percent of Americans chose to fall behind on their credit cards but stayed current on their mortgage payments. The study found that shortly after the 2007 recession, Americans began to switch their priorities to paying their credit cards rather than their mortgages.
A major reason why many homeowners opted to fall behind on their mortgages in favor of credit cards was the collapse of the housing market, which left many homeowners owing more on their homes than they are worth. At the end of 2010, almost a quarter of all homeowners in the U.S. owed more on their homes than they were worth. At the same time, credit is tightening, and consumers are realizing that keeping a line of credit can be a necessity in tough times.
Are you struggling to stay current with your credit cards, as well as your mortgage? Do you feel like you are getting further and further behind each month? If so, you may wish to consider bankruptcy. Contact New Jersey bankruptcy and credit debt lawyer Robert Manchel at 866-503-5655 to learn more about your debt relief options.