Posted on 09/26/2007 9:39:38 AM PDT by Hydroshock
Late payments on U.S. home equity lines of credit rose to a 5-1/2 year high in the second quarter of 2007 but delinquencies on many other types of consumer loans fell, the American Bankers Association said Wednesday.
In its quarterly report on consumer borrowing, the bankers group said delinquencies in repaying home equity lines of credit rose to 0.77 percent in the April-June period.
That compared to a rate of 0.60 percent in the first quarter and represented the highest rate since the fourth quarter of 2001 when the rate was 0.81 percent.
However, the rate of closed-end home equity loan delinquencies fell in the latest quarter to 1.99 percent from 2.15 percent earlier in the year, the group said.
Closed-end home equity loans consist of a fixed amount with a fixed rate while borrowers using home equity lines of credit have a capped limit and are usually subject to adjustable interest rates.
(Excerpt) Read more at cnbc.com ...
A trend is emerging: People are willing to allow mortgages to go unpaid and are paying their revolving credit.
Yep, if you have no equity or are upside down on you note you might as well save the cash, pay off other debts, and let the house go to the bank. Then rent a few years and look at buying again.
I heard Dave Ramsey say this and it blew my mind. They have their priorities all screwed up.
Actually, we did have to go a month without paying. But, that was more because of some mess ups with my husband’s business. It’s going to be a really tight budget in the next few months because of it, but there wasn’t really a choice.
Good luck. If possible you might want to start squirreling away a few months worth of bills for when Murphy’s law comes to call.
Not necessarily, they in many cases have no equity and when you have nothing in a property it is a lot easier to just walk away.
Yeah. will do when we get caught up. it was a vehicular issue.
I had to drop $2.5K in my tranmission last year, that took a chunk of cash. I know the feeling.
I saw a snowflake today. There was no doubt about it. Winter is here although it is still around 30. Everybody getting their heating oil tank topped off is kind of stuned by the size of the payment, highest price ever and last winter was hefty. Those who haven’t allowed for the extra couple hundred for a fill up are feeling the pinch.
I have been workin my self to death on OT, yes my wife and I have had a few things happen to cause us to spend more, and have had a few extras, but we have increase out Murphy’s Law fund by about $5K this year. It is a nice feeling to know you have cash on hand to buy you and yours out of live Oh Craps.
So, how much do you usually put aside a week/month/ however you do it?
Minimum of $300 a month, btu with all the OT this year we have put back about $500 with some unexpected expenses, like a new microwave, stove, couch, and diswasher, the key is doing everyomnth for a while. I have worked a lot of OT.
But... but... but... they said this was only a subprime problem that only affects a teentsie-weentsie tiny little number of loans. You mean, they lied? Say it ain’t so...
Tip of the iceberg.
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