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Forget the Mortgage, I'm Paying My Credit Card Bill

http://finance.yahoo.com/news/Forget-the-Mortgage-Im-Paying-usnews-816222158.html?x=0&.v=2

If this is true, why do you think so? Do people just not care anymore about the house? Do you think the stigma of having your house repoed gone?
If you are in this situation what are you doing? House or Credit cards?
.
I still think I'd pay my house note, after all it's the CC companies who are raising rates sky high, sometimes doubling payments.

Answer Question
 
itsmesteph11

Asked by itsmesteph11 at 12:19 PM on Feb. 9, 2010 in Money & Work

Level 39 (113,405 Credits)
Answers (8)
  • Thank all those credit gurus (the ones who make you pay them for their advice, then turn around and tell you not to pay for things you can get for free) for telling everyone to always pay the lowest balance first and snowball up to the largest balance.
    Anonymous

    Answer by Anonymous at 12:20 PM on Feb. 9, 2010

  • I pay everything before my credit cards.
    Anonymous

    Answer by Anonymous at 12:21 PM on Feb. 9, 2010

  • www.careone.com

    They are a credit counseling company and they helped us pay off our 5 credit cards plus one loan. And I agree with you. The house would be first.
    SalemWitchChild

    Answer by SalemWitchChild at 12:21 PM on Feb. 9, 2010

  • excuse me its www.careonecredit.com

    Sorry!
    SalemWitchChild

    Answer by SalemWitchChild at 12:22 PM on Feb. 9, 2010

  • Guess they don't care if they are homeless.  I sure hope they don't live with mom and pop again after all they are adults. 

    Anonymous

    Answer by Anonymous at 12:32 PM on Feb. 9, 2010

  • Definitely the house comes first! Then comes the car, then comes utilities.
    kc932

    Answer by kc932 at 1:18 PM on Feb. 9, 2010

  • Hey 1st anon: If people LISTENED and FOLLOWED the credit gurus' advice, they shouldn't even HAVE a credit card balance that they can't pay off.

    If anyone read the article, people are seeing their home values fall to below what they paid for it, so their reasoning is why pay for something that's not even worth what they're paying and they've lost their equity. The error in that thinking is that values will rise again eventually.

    They also figure that credit card companies will close off the credit cards pretty quick compared to losing their home to foreclosure, which can take up to 18 months.

    I don't envy anyone in that position.
    michiganmom116

    Answer by michiganmom116 at 1:48 PM on Feb. 9, 2010

  • I just read an article this morning, think it was from Five Cent Nickel, ripping that idea to shreds. Not paying your mortgage can trash your credit for 7 years as well as make it all but impossible to get another place. Not paying credit cards just puts you deeper in the hole as it's unsecured debt. Granted the interest rates are horrid.

    Look, most people buy their houses to live in. If you're in to flip it, well that's another matter. But at least you have a place to live.

    I don't envy anyone in that position either.
    oddfox

    Answer by oddfox at 10:10 AM on Feb. 10, 2010

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