Today, one of our writers came across an article that made me want to throw up just from reading the title: Forget the Mortgage, I’m Paying My Credit Card Bill. Oh man, where do I start? I honestly feel bad for the people that write this crap and for the people that they interview, because they really have no idea how much damage their advice is doing to the American people. I thought the title was a joke at first. I thought the article would make a case for paying your credit card first, then go back to reality about how paying your mortgage and keeping a roof over your head should be the first priority. But, that never happened!
The article starts off with statistics from TransUnion about the increase in defaulted mortgages and a decrease in defaulted credit card accounts.
A recent study developed by TransUnion found 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.
Did the “journalist” ever stop to think that this statistic could be interpreted a different way? Could it be that the amount of people working to get out of debt has increased more than the amount of people defaulting on their mortgages? This recession and unemployment rate has made people wake up. They don’t want credit card debt anymore, but that doesn’t mean the same people that are paying off credit cards are also defaulting on their mortgages because of it. They’re selling stuff, taking second jobs, and getting the HELL out of debt, because being in so much debt was what got them in a bad situation in the first place.
Then, he goes on to blame the housing market for the reason that people are defaulting on their …
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