Data from questioning almost 2,800 adults shows that mortgage loans are perceived as one of the most burdensome forms of debt. It can also be the most damaging to financial circumstances if something goes wrong.
It’s estimated that U.S. consumers have an outstanding debt of $3.4 trillion. On average, households have over $16,000 debt, a rise of more than a 10 percent since 2012. Not all debt is bad - college loans can result in better careers - but crippling debts such as medical, auto loan, and mortgage debts, if not managed, can wreak devastation.
Just over half the survey respondents claimed not to be in debt. Expert Bruce McClary believes that this is because many people have forgotten about their debts. Goods bought via deferred payments remain as outstanding until repayments are complete. The largest debts relate to home loans, with the average household owing $59,500.
The mortgage sector in the U.S. is currently a friendly environment, with federal funds rates at their lowest point in almost eight years. Refinancing rates are currently low - for consumers with good credit histories, financial institutions may battle for their business. Decreasing your loan term could also save thousands of dollars, so if you could make larger payments, you could be better off in the future.
Many people try to obtain mortgages, but keep in mind that these are ongoing debts that homeowners need to ensure they can afford.
If you want to settle outstanding debts for less than what you owe, try our debt settlement tool.