The 2024 Credit Card Debt Crisis. A Wake-Up Call for Homeowners.

The latest report from the New York Federal Reserve Bank has sent shockwaves through the financial world: American credit card debt has reached a staggering $1.14 trillion, an all-time high. But the real alarm bells are ringing due to the surge in delinquencies.

Over the past year, a staggering 9.1% of credit card balances have slipped into delinquency, the highest rate since the aftermath of the 2007-09 recession. Even more concerning, 7.18% of balances are now seriously delinquent, a 13-year high.

These numbers paint a sobering picture of the financial strain many Americans are facing. Rising interest rates and persistent inflation have made it increasingly difficult for households to keep up with their credit card payments.

Is Your Wallet at Risk?

If you're carrying a significant credit card balance, it's time for a reality check. High-interest debt can quickly spiral out of control, trapping you in a cycle of endless payments and mounting stress.

But don't lose hope! There are solutions available, and as a mortgage professional that has found a way to thrive during some of the most difficult times in our society, I've seen firsthand how a strategic financial move can turn the tide.

Cash-Out Refinancing: A Potential Lifeline

One powerful tool for tackling high-interest debt is a cash-out refinance. If you're a homeowner with sufficient equity, you can leverage your home's value to consolidate your debt into a single, lower-interest loan. This can significantly reduce your monthly payments and save you thousands of dollars in interest over time.

Even if you're carrying a large amount of debt at high interest rates, don't discount the potential benefits of a cash-out refinance. By replacing those high-interest balances with a lower-rate mortgage, you can free up much-needed cash flow and regain control of your finances.

Timing is Everything

The mortgage landscape is constantly evolving, and right now, we're seeing some positive signs for borrowers. There's growing speculation that interest rates may drop further in September, making it an opportune time to explore your refinancing options.

If you've been considering a cash-out refinance, I encourage you to act now. Don't miss out on this potential opportunity to save money, reduce your debt burden, and achieve financial peace of mind.

As your Southeastern mortgage advisor, my team and I are committed to helping you navigate these challenging times and find the best solutions for your unique situation. Whether you're struggling with credit card debt or simply exploring your options, don't hesitate to reach out. I'm here to offer expert guidance and support you every step of the way.

Together, we can turn financial stress into financial freedom.

Get in touch with us today.?

The Sherry Riano Team

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