Homeowners value credit cards over shelter
A recent Associated Press article sheds light on an alarming new trend. Homeowners are paying their credit card bills before their mortgage payments! What? Is this a joke? The only thing I can figure is consumers know a mortgage lender usually offers a grace period of a week or two. Credit cards usually don’t. One day late with these babies and your slapped with fees so heavy it will make your head spin.
Another theory offered in the article is that consumers need to hold onto their credit cards as a means of survival, because the game of refinancing a home for cash is over and done. There is little other explanation for the fact that credit card late payments have decreased while foreclosures have increased. However, consumers full-on attention to their credit cards may be slipping a bit, according to the article.
Interesting trend. I shy away from credit card fees just as much as the next guy, but come on, it’s your house! Credit card companies will not put a roof over your head.
October 31st, 2007 at 10:06 am
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