Credit Card Debt vs. The Mortgage

Everyone knows that credit card companies can be vicious at times, but even worse, they can be mightily convincing. So much so, that some people just might be inclined to pay them before they their mortgage.

"Late payments on home equity loans climbed to a 1½-year high in the opening quarter of this year, while delinquencies on credit card bills fell, painting a mixed picture of how people are managing their debt." (http://www.msnbc.msn.com/id/19580805/)

Yes, that's backwards. The bank can take your house. The credit card company cannot. Pay the bank that holds the title to your home BEFORE you pay the credit card company.

If you you are stuck with having to choose between paying the credit card or paying your mortgage, pay your mortgage first and whatever is left over, that's what the credit card company gets.

Will they complain? Yep. Might they threaten to take your possessions or garnish your wages? Yep. Can they do either? Absolutely not. Not without a court order which can only be obtained if they sue you and win a judgment against you. Without a judgment, idle threats on the phone or by mail are just that, idle threats. Well, actually, they are not idle, they are illegal.

Don't take my word for it though. Confirm it here, and especially here (paragraph 4).