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Consumers burdened with debt would rather pay their phone bill before anything else, according to research.
The University of Sydney and credit bureau Illion study of more than 11,000 New Zealand consumers aimed to discover the pecking order of debts people were likely to default on.
University of Sydney Business School senior lecturer Andrew Grant said consumers did not want to damage their relationship with their bank, however their priorities were ultimately based on personal needs.
"The mobile phone also seems to be very important to the consumer, as the repayment of phone instalments is generally prioritised over credit obligations, suggesting the smartphone is now a bedrock of people's livelihood," he said.
Credit cards were ranked 10th in a list of bills consumers were likely to pay first, with overdraft payments rated second in the list of priorities.
"When a person defaults on their overdraft, this is quickly followed by a default on other credit facilities. It's therefore a strong indicator of financial ruin," he said.
He said consumers were nearly four times as likely to default on their credit card, compared with their personal loans, mostly because personal loans were usually paid automatically.
New forms of credit like buy-now-pay-later schemes were also down the list of priorities.
Mortgage payments were third in the list of priorities after overdrafts, as consumers thought their relationship with their bank would help them get through a tough patch.
Utility bills were also high on the list of priorities, as defaulting on a utility payment could adversely affect one's credit rating.