The troubled economy is leaving consumers with increasingly tough decisions about which debts to pay first, and in some cases, which to pay at all. In the latest indication of these pressures, late payments on home-equity lines of credit rose to an 11-year high in the first quarter of 2008, according to the American Bankers Association.
“It’s not a surprise at all that delinquencies are at an 11-year high,” says Joel Naroff, president of Naroff Economic Advisors. “The consumer is getting hit from all directions.”
My wife and I look at it this way: If we really don’t need something, we don’t buy it…..on credit or otherwise. Nice to have, but not necessary? Don’t buy it! Don’t need it? Forget it!
I personally place equal blame for the current house lending diaster on the shoulders of the banks who were looking for a quick buck lending money recklessly to those who couldn’t handle it. Also on those borrowers who would even consider a non-fixed interrest mortgage. I have always signed up for a fixed-rate 30 year mortgage. I was able at one time to convert to a fifteen year mortgage. The payments back increased by about 16% but when I sold the sold years later I mada good profit.
Sorry mada=made