Late Credit Card Payments

Late Credit Card Payments - U.S. consumers are struggling with "the mortgage crisis" and "the credit card debt" crisis. Many U.S. consumers are falling behind on their mortgage home loan payments, credit card payments and auto loans. Some borrowers are more likely to let their mortgage payment slide than the other kinds of debt, according to a recent study conducted by Equifax, a major consumer-credit rating agency.

In the study, researchers looked at thousands of borrowers who had taken out mortgages in 2002 and 2005 and tracked their payment behavior over a 24 month period. Of those in the 2002 sample who missed two payments on their mortgages during the two years, 26% maintained a spotless credit card payment history and 59% kept pace with car payments.

Mortgage payments continued to slide down the list of priorities a few years later. Of those in the 2005 sample who fell behind on their mortgages, 38% kept up with credit-card payments, and 62% made all of their car payments.
People always pay their mortgage or auto loan first.
People who were delinquent on their mortgages but who paid their credit cards on time tended to have higher credit scores.
Many know they have to make payments on their credit card because they need them, and they need their car to get to work.
Many lack the monthly income to pay-off all their bills, so they pay the minimum amount necessary to keep credit cards.
People are living off their credit cards (food, gas) and cash advances to pay their mortgages.
Mortgage payment should be primary priority, but what if you don't food, heat or light.
Some borrowers neglect their mortgages because they think banks will help them.

Its important to know that your FICO credit score suffers more from a late mortgage payment than a default on other debt. A late mortgage payment is probably more important than a late credit-card payment, but any 30-day late payment has a dramatic effect on your FICO credit score by dropping up to 100 points.