Why you Should Never Skip Mortgage to Pay for Credit Card?

January 4, 2012

Author: William M. Davis

In these tough economic times many Americans are not only late on their mortgage payments, but are also neglecting their monthly payment all together just to make ends meet.

Using Mortgage Payments to Pay Credit Card Bills

According to a recent study, in some areas of the United States more than 9% of credit card users decided that it was best to pay their credit card bills instead of paying their huge mortgage payment. Some homeowners are having a difficult time meeting their mortgage obligation and are using that money instead to meet their day-to-day expenses like groceries and so on.

Skipping Mortgage to Pay Credit Card

Today a lot of homeowners continue to find it difficult, if not impossible, to keep up with their monthly mortgage payment. However, this is a huge problem because being late on mortgage payments could end up causing more credit problems in the future. Choosing to skip mortgage payments will seriously affect a borrower’s credit rating, among other negative effects. And this is what these homeowners aren’t thinking about when they skip payments or stop paying their mortgage.

Struggling Homeowners Cannot Pay Mortgage Payment

During tough times most people with home loans usually stop paying them; rather they pay credit card bills and other living expenses just to get by. In most cases the mortgage bill is one of the first things they stop paying when times are tough. However, in good economic times, mortgage payment seems to take priority over other debts.

Consumers Using Credit Cards to Survive

Homeowners affected by unemployment who are going through financial hardships are paying smaller bills just to survive. The house note is no longer a top priority on their list of bills to pay each month. By paying their credit card bills instead of their mortgage bills they can survive from one month to the next. Doing this helps them to maintain access to funds just in case they need to use the available credit for emergency situations.

Why you Should Never Skip Mortgage to Pay for Credit Card

However, here are some reasons why you should never skip your mortgage to pay for your credit cards. Skipping your mortgage and neglecting your financial responsibilities can result in:

• Foreclosure
• Bad credit rating
• Eviction
• More financial problems
• Decline for future credit
• Higher interest rates
• Bad credit report

Are You Skipping Mortgage Payments to Pay Credit Card Bills?

For most struggling homeowners, paying credit card bills first is simply more feasible than trying to come up with a significantly larger mortgage payment each month. But, is this a good idea?

Please share your stories and thoughts on this subject.