Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Paying Your Credit Card Before Your Mortgage? You May Need Missouri or Illinois Bankruptcy Faster Than You Think

It seems that consumers all over the U.S. are putting more stock in having a credit card than a home for their families. A recent study from TransUnion reported, “the percentage of Americans who were current on their credit cards but behind on their mortgage increased to 6.6 percent in the third quarter of 2009, up from 4.3 percent in the first quarter of 2008. Meanwhile, the share of consumers making mortgage payments on time but behind on their credit cards moved in the opposite direction, sliding from 4.1 percent to 3.6 percent over the same time period.”

Alarming, huh? It seems these “strategic foreclosures” may be in the minds of more than just a few homeowners. The idea behind it is that a credit card can pay for your basic needs like food, clothing, and water, whereas paying on your mortgage is dumping money into a housing market that will never recover.

It seems to me that, either way, these people are in trouble. Using your credit cards to pay for essentials is typically a sign that you are in financial trouble. And if you have to choose between paying for your credit card and paying for your home, you’re definitely in hot water. This home-made solution to credit card debt could leave you needing protection from foreclosure for you and your family.

If you think you might be in financial trouble, it is time to get the facts and look at your options. Request a free copy of my Missouri and Illinois bankruptcy book, “Get Out of Debt: Secrets Your Creditors Don’t Want You to Know,” before you find yourself in a similar situation.