Americans Paying Off Car Loans Before Mortgage, Credit Cards ...

Among all the loans being held by Americans, car notes appear to have lower delinquency rates, according to a report by the Associated Press.

Speaking with TransUnion, a credit information agency, the AP found that

39 percent were delinquent on the mortgage while current on the car loan and credit cards, and 17 percent were late on credit cards while current on the other two.

Only 10 percent were late on the car loan while current on the other two.

Back in 2006,?respondents?said that paying their mortgage was the financial priority. Six years later, priorities have changed. While foreclosures typically take a fair amount of time to occur, cars can be?repossessed?after 90 days of non-payment. Cars are also needed to get to work in many cases, and owners may not be able to get another vehicle after the bank repos their ride. Banks and credit card companies are also more flexible when it comes to negotiating some kind of payment schedule or re-financing ? but a ?buy here, pay here? lot? Not so much.

Source: http://www.thetruthaboutcars.com/2012/03/americans-paying-off-car-loans-before-mortgage-credit-cards/

andrew mason