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New TransUnion study finds struggling consumers who possess multiple credit products (auto, mortgage, student) tend to pay their unsecured person loans first. The author conjectures that personal loans may be first in the stack because they tend to be shorter duration so they perceive a clear, near-term end to the obligation.
Prior to including unsecured personal loans in the payment hierarchy analysis, TransUnion had reviewed payment patterns for auto loans, credit cards and mortgages. Since at least 2004, consumers with an auto loan, credit card and mortgage have prioritized their auto payments. Mortgages have traditionally been the second payment made, followed by credit cards.
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