Updated
Updated · The New York Times · Aug 11
Homeowners Tap Record $35 Trillion in Equity to Pay Off Card Debt
Updated
Updated · The New York Times · Aug 11

Homeowners Tap Record $35 Trillion in Equity to Pay Off Card Debt

3 articles · Updated · The New York Times · Aug 11

Summary

  • $35 trillion in home equity has given U.S. homeowners a record cushion that many are now using to pay down mounting credit card balances.
  • Higher card bills are pushing borrowers to turn houses into a source of cash, replacing expensive revolving debt with home-equity loans or lines of credit.
  • Rocket offered Ohio homeowner Linda Boroski a $45,000 home-equity loan, which she used to erase $26,000 in medical-travel card debt and fund home repairs.
  • The shift shows how consumer spending is still being supported by housing wealth, even as household debt pressures keep building.

Insights

Are homeowners risking foreclosure by trading unsecured credit card balances for home equity loans just to stay afloat?
What happens to the economy when the home equity well runs dry and consumers can no longer borrow their way out of debt?