In the year 2000, Americans took 26 billion dollars out of the equity of their homes. This rose to 620 billion in 2006. 35% of the money was used for home improvement, 16% was used for consumer purchases and 26% was used to pay off consumer debt.
1 in 7 households have 10 credit cards. 40% of those people don't pay their monthly credit card balance in full at the end of each month. Many are caught in the trap of spending money they don't have on things that they don't really need. They are avoiding paying off the debt they have and using the equity in their homes to keep the monthly payments in check. The unfortunate thing about this is that for most people, the equity in their homes is their largest investment.
Real Estate can be a solid long term investment. Having lien free Real Estate with income from rents paid, brings in passive income. Passive income can make you feel comfortable when you retire. Paying off consumer debt with high interest rates and reducing household debt is a good way to start. It is also a good idea to order a credit report to track your credit score and remove any mistakes. Making a monthly house hold budget and paying off consumer debt is imperative.
The Williams Team at Windermere Real Estate are full time Real Estate Professionals serving the Walla Walla Valley. We take pride in having the training and experience necessary to handle all the details a real estate transaction demands. If you or someone you know is looking to buy or sell Real Estate in the Walla Walla Valley, please get in touch with us.
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