TransUnion Finds Struggling Consumers Pay Off Unsecured Personal Loans First

http://www.insidearm.com/news/00042906-transunion-finds-struggling-consumers-pay/

A new study from TransUnion has revealed that when faced with the choice of which debts to pay, consumers in financial distress are choosing to prioritize unsecured personal loans ahead of others such as auto loans, mortgages and credit cards.

This is the first time unsecured personal loans have been incorporated into the TransUnion study, which has analyzed the consumer payment hierarchy since 2010. The company reports that since at least 2004, consumers have historically prioritized auto loans over mortgages and credit cards.

The study reports the following delinquency rates* by product:

Year	Personal Loan	Auto Loan	Mortgage	Credit Card
Q4 2012	1.10%	1.86%	3.49%	3.11%
Q4 2013	1.17%	1.84%	3.13%	3.23%
Q4 2014	1.19%	1.76%	2.63%	3.05%
Q4 2015	1.26%	1.68%	2.32%	2.87%
Q4 2016	1.49%	1.75%	2.44%	3.65%

*Delinquency rates after 12 months for consumers who possess and are current on all four credit products at the beginning of the respective performance measurement period.

The full TransUnion study can be found here.

[article_ad]