Comments on: Paying credit cards before a mortgage? What???

By: Jason

Jason — Thu, 20 Jan 2011 19:19:33 +0000

paying credit cards instead of mortgage for me enabled a loan modification, and allowed me to keep my credit, now everyone will get paid in full (minus lower interest on the mortgage)

Don’t assume people do this because they are uneducated, in fact I would guess that people do this because they are looking out for their own best financial interest, which is what they should be doing.

By: Dan Ray

Dan Ray — Wed, 01 Oct 2008 16:22:53 +0000

My site, CreditCards.com, heard about this phenomena anecdotally last year, so we hired GfK Roper to do a scientific poll on the topic. The major findings include:
Â• More than half of the nation (54 percent) say they would pay their mortgage payment first. Making sure the home remains livable by paying utility bills ran second at 34 percent.
Â• Just 6 percent said they would pay the credit card bill first if they were falling behind financially. Nearly two-thirds (64 percent) say they’d put off paying credit cards even if it meant losing them.
Â• A measly 3 percent would think to put off paying a mortgage if it meant losing it.
That was in September of ’07. I think I’ll re-run that poll. Since the economy has turned from troubled to in-crisis since then, the answers may be different.
http://www.creditcards.com/credit-card-news/bill-pay-priorities-1276.php

By: Citigroup Takes Over Wachovia

Citigroup Takes Over Wachovia — Tue, 30 Sep 2008 15:08:27 +0000

[...] by Gather Little by Little (who works at one of the large banks), where he revealed that people are paying their credit cards before their mortgages. Yes, they should pay off both, but if it comes to one or the other the mortgage should be [...]

By: Louie

Louie — Tue, 23 Sep 2008 04:01:14 +0000

It makes no sense to pay of your credit cards before your mortgage. I agree you should keep at least one credit card for emergencies especially with all these 0 apr for a year deals, you just have to show restraint!

By: Friday Roundup « My Daily Dollars

Friday Roundup « My Daily Dollars — Fri, 12 Sep 2008 12:29:19 +0000

[...] The Carnival of Debt Reduction made it through the recent round of hurricanes and showcased a whirlwind of good articles. Debt Smackdown had good advice about when not to cancel a credit card. Budgets are Sexy asked if you ever signed up for a credit card just for a tee-shirt. Of course, mine ended up being one expensive “freebie”!Â Gather Little by Little had an interesting discussion about people who pay their credit cards before their mortgages. [...]

By: My Daily Dollars

My Daily Dollars — Mon, 08 Sep 2008 15:47:20 +0000

Thanks for sharing this story. How awful that people feel the pressure to pay thier credit cards before their mortgage! Your tips are great; I agree that you can certainly get by with only a debit card. It’s tough at first, but the feeling IS awesome once you get control of your finances.

By: Carnival of Debt Reduction » Blog Archive » Welcome to a windy and rainy Carnival of Debt Reduction

Mon, 08 Sep 2008 12:09:56 +0000

[...] Gather Little By Little thinks it’s laughable that people pay their credit card fill before their mortgage. [...]

By: Weekly Round-Up: King’s Dominion | Green Panda Treehouse

Weekly Round-Up: King’s Dominion | Green Panda Treehouse — Mon, 01 Sep 2008 03:53:16 +0000

[...] Paying credit cards before a mortgage? What??? [...]

By: thinkingthing

thinkingthing — Sun, 31 Aug 2008 18:21:56 +0000

If you want to live off a debit card, set up a free checking account SEPARATE from the checking account that receives your direct deposits. Some banks waive the minimum balance if you set up the account online. Make sure that they turn off the stinky overdraw protection service – it defeats the purpose of using the account to cap your discretionary spending.

Set up an automatic weekly transfer to the account – make sure it’s a realistic amount or you’ll ALWAYS go back to using the cards. You’re on a diet, if you starve yourself, you won’t be able to maintain it.

After this, it’s just a matter of will power. With your budgeted allowance being transfered automatically to the debit card, you have no excuse for using credit cards, using the earmarked funds in your main checking account, or rerouting funds from your savings plan. And staying in the black is as easy as using the debit card for all discretionary purchases.

By: HD Car Stereo for under $50?

HD Car Stereo for under $50? — Sat, 30 Aug 2008 13:21:13 +0000

[...] Paying credit card bills before mortgage payment Related posts [...]