The Latest Banking Credit Cards Loans Mortgage News

Consumers putting their money in different places now

Consumers putting their money in different places now

People valuing mortgages over credit cards once again

A recent report from credit giant TransUnion took a look at where people are now putting their money and had some interesting findings.

According to TransUnion, consumers are now paying their mortgages ahead of their credit cards, which is the opposite of what was observed during the housing meltdown.

“The results of previous TransUnion research showed that, beginning in 2008, consumers with both a credit card and a mortgage had a higher propensity to go delinquent on their mortgages than on their credit cards — a reversal of traditional payment patterns,” Steve Chaouki, Vice President in TransUnion’s financial services business unit, said in a statement.

Despite consumers’ newfound devotion to paying mortgages over credit cards, auto loans remained ahead of both mortgages and credit cards in the eyes of those same consumers.

“Our latest study indicates that, for the first time since the housing bubble, consumers with constrained liquidity are making their mortgage payments about as much as their credit card payments, though auto loan payments remain the top priority,” Chaouki said.

From 2011 to 2012, auto loan delinquencies (30 or more days late) dropped from 0.93 percent to 0.88 percent. In that same time frame, mortgage delinquencies dropped sharply from 2.46 percent to 1.91 percent. Credit card delinquencies, however, increased from 1.76 percent in 2011 to 1.82 percent in 2012.

“With continued improvements in housing prices, it’s probable that by the end of 2013 we will see the majority of consumers paying their mortgages ahead of their credit cards,” Chaouki said.

Source: TransUnion

Related: Local mortgage refinance rates

Posted in: Banking, Credit Cards, Loans, Mortgage

Free Credit Scores

Banking Tips

International cell phone use

If you are hoping to use your cell phone on an upcoming trip overseas, owning a GSM-capable cell phone is a great step in the right direction. Read more

Banking FAQs

Banking Calculators

Certificate of Deposit Calculator
Certificate of Deposit Calculator

Compare Certificate of Deposit (CD) options. Compare different rates and lengths to see how much you may be able to earn.

you are here ›› homenews › certificate of deposit
Personal Finance News - Certificate of Deposit