A new study completed by TransUnion has found that the latest recession has changed the way many Americans pay their bills. In 2006, TransUnion, a credit information company, did a study to determine which bills Americans pay first when they are short on funds. In the 2006 study, paying the mortgage was the first priority of the majority of Americans who did not have enough cash to pay all of their bills in a given month.
The 2012 TransUnion study had different results. Now, the majority of cash-strapped Americans are making car payments their top priority and choosing to pay their car loans before their mortgages and credit card bills. In coming to this conclusion, TransUnion studied the bill payment habits of 4 million Americans who all had at least one car, one mortgage and one credit card.
The most recent study specifically found that among the debtors who were late with their payments, 39% were late with their mortgage and credit card payments while current on their car loans. 17% were late on their credit cards and current on the mortgage and car loans. Only 10% were late on their car loans while current on their credit cards and mortgages.
According to TransUnion, there are a number of reasons why the change may have occurred. First, more people may see cars as a priority to get them to and from work or as a necessity to look for work. Second, home values have dropped significantly, and the home may no longer be seen as a good investment. Finally, foreclosures typically take longer than car repossessions, making the car payment seem more important.
Our Minneapolis debt reduction lawyers hope that the hard financial times end soon and that Minnesotans can pay all their bills without having to make hard choices.