We hope you are enjoying the week and getting ready for the weekend! This a very informative article from the Los Angeles Times…
As home values plunged last decade, troubled borrowers started stiffing their mortgage company in favor of using limited cash to pay down credit cards.
The financial math made sense: When forced into hard choices, why continue to pile money on the deck of a sinking ship?
But that’s changing, a study released Thursday found. It’s the latest sign of an improving housing market and economy that has homeowners again seeing long-term value in their homes.
Financially strapped Americans are now about as likely to fall behind on their credit cards as they are on their mortgage, personal credit-rating company TransUnion said.
“Their home is no longer a liability,” said Ezra Becker, the study’s co-author and a vice president at TransUnion.
In 2009, consumers who held an auto loan, a mortgage and credit cards were 30 days or more delinquent on their mortgages at a rate of 3.83%. The delinquency rate for credit cards was lower, at 2.82%.
Read the full article on latimes: http://www.latimes.com/business/money/la-fi-mo-credit-card-mortgages-20130918,0,479553.story?track=rss