Contact Us

Which Bill Do You Pay First? [POLL]

A new study from TransUnion, a credit information company, found that consumers in 2011 were more likely to pay their auto loans before their credit cards and mortgages. This is a sign of an economy that has not yet recovered, according to financial experts.

Dino Flammia, Townsquare Media

Looking at a sample of approximately four million American consumers in each quarter of last year (with at least one car loan, one mortgage and one credit card bill), the auto loan was seldom the first choice when a consumer had to choose which payment to miss. Credit cards ranked second, with mortgage last.

“Many people place a very high value on having their car available,” said Maury Randall, Chairman of the Finance Department at Rider University. He noted cars are the way people get to work, and are the middlemen for people to gather what they need to survive, like food.

With an improving car market, the value of a car has increased. Meanwhile, with a struggling housing market, many homes are worth less than what their owners owe.

“It takes much longer for a foreclosure to take place,” Randall explained.

He added, “There’s all sorts of plans that exist today where people can work out something with the bank.”

In the past, consumers put their mortgages before anything else. The recession and its aftermath has, somewhat, turned bill-paying upside-down.

“This is a clear indication that the economy still has a way to go to get back where it was before the 2008-2009 recession began,” Randall said.

He said this has become a real problem; instead of staying current on payments, people are choosing which bill to pay.

 

Audio clip: Adobe Flash Player (version 9 or above) is required to play this audio clip. Download the latest version here. You also need to have JavaScript enabled in your browser.

More from WOBM AM

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://wobmam.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on WOBM-AM 1160 & 1310 quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Sign up for an account to comment, share your thoughts, and earn points to get great prizes.

Register on WOBM-AM 1160 & 1310 quickly by logging in with your Facebook account. It's just as secure, and no password to remember!