“$200,000 Income, but Can’t Save Any Money”
Spending more than you make seems to be a national addiction, I don't see it changing for those who are afflicted until something drastic happens. And even after bankruptcy many just start buying again, must have learned this behavior from the government.
“$200,000 Income, but Can’t Save Any Money”
I spoke to clients this morning about a possible refinance. They estimate the value of their home at $650,000 and have two mortgages, the first at $415,000 @ 6.75% and second of $167,000 @ 7.875%. Credit card and installment debts total $166,000. Literally every dollar these folks make goes to paying their debt. In spite of their income all the money goes to paying their debts.
Fortunately, the area of Massachusetts where their home is, has increased in value over the last two years, otherwise they would really be upside down. Hopefully their value will go up enough for me to be able to refinance their 2 mortgages over the next year or two and rates stay at a point that makes a refinance the right decision.
I carry on this kind of conversation a couple times a week where folks are a heavy user of debt that make great incomes and the end of the week, month and year don’t have much to show for it.
image courtesy of hin255/freedigitalphotos.net
Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Email: joe@righttracfg.com
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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