The New York Federal Reserve Bank's report indicates U.S. consumer debt has surged to a record $18.2 trillion, with mortgages constituting the bulk. Notably, serious delinquency rates rose to 4.3%. Home equity lines of credit (HELOCs) gained traction, reaching $402 billion as homeowners seek funds amid rising inflation. HELOCs are favoured for their lower interest rates and higher borrowing limits. They allow homeowners to leverage equity for significant expenses, demonstrating both their advantages and the wary necessity during challenging economic times.
"HELOCS are usually used for big-ticket items, like home remodeling projects or long-term care medical expenses. I had to update my home's foundation, so I took out a HELOC, received the money to pay for the repairs and quickly paid off the loan."
"Typically, you access the funds through your bank, a check, wire transfer or, sometimes, a credit card."
Collection
[
|
...
]