AllTime Record Credit Card
Credit card and overall consumer debt are at alltime record highs along with the total rates and fees ( APRs ). Credit card defaults are now at the highest level ever or at least since 2012 , when the Fed started tracking this data .
Average APRs are fluctuating between 27 % and 33 % these days for many consumers . It wasn ’ t that long ago when credit card APRs were closer to 12 % about 10 years ago or so .
All stages of credit card delinquency ( 30 , 60 , and 90 + days ) rose during the fourth quarter of 2023 , according to data shared by the Federal Reserve Bank of Philadelphia .
Freddie Mac Bailouts for 2nds
Freddie Mac may soon start purchasing funded home equity lines of credit ( HELOCs ) in the secondary market , as per multiple sources , including HousingWire .
A new multitrillion dollar stimulus package of up to $ 2 trillion is being prepared , by way of the governmentbacked Freddie Mac entity , so that it ' s easier for banks and mortgage companies to offer 2nd loans , which will then be quickly sold off to Freddie Mac .
In recent years , a larger number of banks and mortgage companies stopped offering HELOCs due to the perceived risk , especially for liens in 2nd position .
If lenders may soon be able to quickly unload the funded HELOCs over to Freddie Mac , they may be inspired to offer these types of riskier loans again . Whether it ’ s a federal bailout of lenders , homeowners , small businesses , billiondollar corporations , or consumers drowning in credit card or student loan debt , all of these actions are inflationary and will likely make the dollar weaker and weaker .
Because government spending is likely to keep exceeding alltime record highs , these inflationary actions may help boost real estate values that are generally hedged against inflation .
Please try to pay off any doubledigit consumer debt , set aside cash for you and your family if possible , and keep your eyes wide open for potential discounted real estate bargains in a neighborhood near you .
MEET RICK TOBIN
Rick Tobin has worked in the real estate , financial , investment , and writing fields for the past 30 + years . He ’ s held eight ( 8 ) different real estate , securities , and mortgage brokerage licenses to date and is a graduate of the University of Southern California . He provides creative residential and commercial mortgage solutions for clients across the nation . He ’ s also written college textbooks and real estate licensing courses in most states for the two largest real estate publishers in the nation ; the oldest real estate school in California ; and the first online real estate school in California . Please visit his website at Realloans . com for financing options and his new investment group at SoCal Real Estate Investors for more details .
47