The House & Home is many things. It is your haven to keep you safe, it is your abode to keep you warm and dry on a cold night, it is a place for entertaining your friends and cooking food. The question is "why has it become an item of income". How is that you ask? Well as time goes on, we are increasingly bombarded with solicitations from banks and financial institutions offering credit against the equity of your home, all stating that they can save you money by shifting higher cost credit card debt and shorter term loans over to a line of credit that in principle is an average 7% APR. Have we stopped to think how much 7% APR will cost us over 30 years versus 22% over 5 years? Do the math on your existing debt and you will see.......
At a time when consumption is high, the availability of consumer products are just a short trip in the car, you have to stop and think when the short term desire for more has to stop and financial conservatism takes over. There is growing pressure from lobby groups to increase the amount of control on financial institutions that "Spin" and do not fully explain what the true costs are in the loan products being sold or offered especially those offered by credit card institutions and banks.
After all of these events Consumer America, is using the equity in their home to further sustain their living costs after they shift these debts from short terms credit card debt, to long term mortgage debt. These kinds of predatory lending practices have to stop and you the consumer have to be protected.
It is going to take time to increase the amount control on financial institutions, which has just started to pick up some momentum. Responsible borrowing and spending is key, and until then, what we have is our own self control.
Please take care and take steps to keep your house.... your home....
A note of concern brought to you by M.O.R.E.
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