CHANTILLY, Va.–Credit card bills continue to be the first to go unpaid by consumers who are short on cash to pay bills, according to a new study.
The study refutes a trend some analysts had suggested was developing, which is that an increasing number of borrowers, especially subprime mortgage borrowers, were letting their mortgage payments go first in favor of paying other bills. The study, from Internet bill-payment solutions provider Online Resources Corp., said the behavior of some subprime borrowers is just an anomaly, and that most consumers continue to put their mortgage payment first.
ORCC CEO Mathew Lawlor said the study found many families have created what he called a “delinquency budget” to decide which bills to pay first. For 98% of households in the ORCC survey, the monthly mortgage payment remains first. "Research indicated very strongly that the card provider is the last in line to get paid," Lawlor said.
