A new study released by the credit reporting agency TransUnion suggests that for many U.S. homeowners to pay the mortgage bill is a higher priority than paying their credit cards.
The findings of the study are based on a decade’s worth of U.S. consumers’ payment data.
Such a change in attitude comes from the fact that U.S. home values have been climbing, and many homeowners were able to build equity in their home. Others were lifted into positive equity after years owning more on their home than it was worth.
In addition, the stabilizing of the job market and a greater access to credit cards also play role in the change.
“We are returning to the traditional trend as the forces in the marketplace that influence consumer payment preferences return to normal,” said Ezra Becker, co-author of the study and TransUnion’s vice president of research and consulting.
Prior to 2008 when the recession started, mortgages had a lower late-payment rate than credit cards, the firm says. However, but the end of 2008, the trend reversed.
Read the full story at ABCNews via Associated Press.