Mortgage Payment or Credit Card Payment?

In the United States, most Americans are juggling several different forms of debt at once and many will reach a point where they simply cannot afford to pay all of them. Each month, you might have five credit card payments, a car payment, a mortgage, and possibly a loan. That's eight different payments each month and some people could easily have double that. When it comes time to choose which payment doesn't get made, it's surprising how many people are choosing their mortgage. Though statistics clearly show home foreclosure rates on the rise, it's unknown why most people continue to make their credit card payments while ignoring their mortgage. A recent survey by Capital One showed that 70% of people who have mortgages at least 90 days overdue still make their credit card payments on time. Statistics like these beg the question of why some people see their credit cards as being more important than their home. Is it because they're stuck in a bad mortgage and would rather face a home foreclosure than lose their credit cards? Traditionally, most people would never pay their credit cards over their mortgages. Clearly, times have changed and the statistics are showing that.

Credit Card and Mortgage Statistics

• About 70% of homeowners are paying for their home through a mortgage.
• Of that 70%, nearly a quarter of them have a second mortgage or home equity line of credit.
• More than 230,000 homeowners are facing some form of foreclosure, which comes out to nearly 1 out of every 500 people.
• Foreclosure filings have more than doubled since a year ago.
• The total US revolving debt is over $900 billion.
• The average household carries $8,500 in credit card debt, however the median balance is just $2,200.
• 1 in 6 families pay only the minimum credit card payment each month.
• Of every $100 spent in the US, almost $40 is spent in a form other than cash or check.