Study: Borrowers paying mortgages ahead of cards

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Associated Press

Posted on March 19, 2014 at 4:00 PM

Updated Thursday, Mar 20 at 8:00 AM

LOS ANGELES (AP) — Many U.S. homeowners are once again giving priority to their mortgage payments over keeping up with their credit card bills.

That's the conclusion of a study released Wednesday by credit reporting agency TransUnion.

The firm examined late-payment rates of mortgages, credit cards and auto loans between 2003 and 2013 among consumers with the three types of financial obligations.

The study found consumers began falling behind on their credit card payments at a greater rate than their mortgage payments last September.

That marked a reversal after a five-year period during which the late-payment rate on credit cards trailed that of home loans.

The shift comes as home values are rising, foreclosures are declining and the economy is steadily adding jobs.

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