Credit cards bills payments ranked first amid consumers leaving mortgages second

According to a syndicated market research report, Cardbeat®, published by Auriemma Consulting Group (ACG), US consumers consider credit cards as a higher repayment priority than mortgages. The Group conducted the survey of 430 credit card users in October 2009.

 Previously, consumers had always named their mortgage as the bill they would pay first. Currently, the situation has changed, and mortgage payments are left on a second place, while credit cards bills repayments are the first.

 That is the result of two trends, according to AGG research. First, credit has become tighter. So, issuers have cut credit lines, and cardholders are aware that missed or late payments can trigger rate increases or account closure.

 Second, Mortgage foreclosures have become common and many consumers have ‘underwater’ mortgages for more than the current value of their home.