When it comes to debt, what may overwhelm people the most is determining which bills are the most important to pay first when it seems impossible to pay all of them in a month's time. Being delinquent on any bill can ultimately lead to a deeper hole of debt, and wage garnishment can cause further frustration and embarrassment for a Pennsylvania consumer who is struggling to achieve debt relief. New data suggests that consumers who are having trouble meeting all of their financial obligations at the same time are actually placing greater priority on their mortgages as opposed to their credit card debt .
According to the study results, mortgage debt typically remains the highest priority for consumers. In fact, they typically are willing to make their mortgage payments first, their vehicle loan payments next and their credit card bills third. This shows that credit card debt usually is paid the least amount of attention when they are in a financial bind.
Understandably, consumers are apt to make their auto loan payments before paying on their credit cards because their vehicles are essential in so many aspects of their lives. They simply need transportation to get to their jobs or to find work. It is interesting to note that credit card payments received greater priority than mortgages did during the Great Recession.
Debt can be emotionally and financially draining, especially when a Pennsylvania consumer cannot keep up with it all. One solution may be to file for bankruptcy protection, which can quickly offer lasting debt relief. This legal process enables them to discharge their unsecured debt, releasing them from their financial obligations so that they truly can start over financially and work to build a better future for themselves.
Source: Credit Union Times, Mortgages Reclaim Budget Priority Over Credit Cards: TransUnion, David Morrison, March 19, 2014