Credit card debts 'prioritised over mortgages'

When assessing regular outgoings, many Brits might be prioritising the repayment of credit card bills over the completion of their mortgage payments.

New research from First Direct found 33 per cent of UK adults would give their plastic bills precedence over other concerns if they had extra spare income.

Indeed, twice as many mortgage holders say they prefer setting money aside for the future over other considerations, which could help people stay in control of their outgoings and reduce the risk of missing a payment.

Furthermore, it was suggested people are reluctant to pay over their mortgage debt in times of economic uncertainty as the money may be put to better use in other situations.

A bad credit rating could be improved by paying over the minimum on any bill, as lenders will be able to see the individual is capable of managing their finances effectively and is a reliable borrower.

Posted by Martin Peacock