Consumer are paying on their Credit Cards before paying their Mortgage.

Since Jan 2007, according to Experian, a larger percentage of people are 30 days or more late on their mortgages than on their credit cards.

In the current economic slow down, it appears that consumers have chosen to continue to pay on their credit cards while ignoring the mortgage payment.
Too many consumers took out mortgages they couldn’t afford. Now that housing is in a down turn, many now owe more on their house than it’s worth. The thoughts seem to be that they feel they will lose the house anyway, so why bother.

They are concentrating on paying the car payment and credit card bill so they will be able to charge food and other staples if they need to.

Using the house as a “piggy bank” doesn’t work under the current housing conditions.

This is however not necessarily a “smart” strategy, since having your house foreclosed on will affect your credit score, and your credit score will affect the interest rate you will be paying in the future. Not to mention auto insurance, rent, and other monthly payments that are tied to your credit score.

Once again our mentality is instant gratification, not thinking long term.