Study Suggests Auto Loans Top Consumer Payment Priority
A updated payments study from TransUnion, one of three nationwide credit bureaus, suggests that auto loans have supplanted credit cards as the monthly bill payments that consumers are most likely to make, indicating yet another shift in what had been previously understood as predictable consumer behavior.
“The reversal in payment patterns between credit cards and mortgages has been well documented, but our findings were illuminating because it had not been previously clear that auto loans were considered a higher priority by consumers than both credit cards and mortgages,” said Ezra Becker, vice president of research and consulting in TransUnion’s financial services business unit. “With unemployment remaining high and real estate values remaining stagnant or further depreciating, consumers continued to pay their credit cards ahead of their mortgages. However, the importance of their auto loans appears to have trumped even the value they place on their credit cards.”