The latest update to the TransUnion Payment Hierarchy Study sheds new light on how consumers prioritize their payments when money is running short. The credit management bureau found that both mortgage and credit card payments take a backseat to those for auto loans, and that of the three, mortgage payments are still at the bottom of the priority list. The study's authors speculate declining housing prices and persistent unemployment rates explain this pattern.
"With unemployment remaining high and real estate values remaining stagnant or further depreciating, consumers continued to pay their credit cards ahead of their mortgages," said Ezra Becker, vice president of research and consulting in TransUnion's financial services business unit, in a press statement. "However, the importance of their auto loans appears to have trumped even the value they place on their credit cards."
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