A new TransUnion study said financially stressed consumers are once again paying mortgage debts before credit card debts; but, it also found automobile debt has always remained their highest priority.
"The thing is, our study showed that automobile debt has always been paid first," explained Ezra Becker, vice president of research and consulting for the nationwide credit bureau and data analytics firm. "We just had not looked at the question of how consumers prioritize payments as closely or over as long a time."
Becker acknowledged the financial services industry has long assumed that in a financial hardship, consumers will pay their mortgage loans first, auto loans second and credit card bill last. He said Transunion's current study, which reviewed data back to 2003, showed consumers have always paid their car loans first.
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