You can scarcely open up a local newspaper without reading about how hot the Bay Area real estate market is. That’s great news for home sellers but not so much for someone looking to exchange a rental agreement for a mortgage deed. As a daily money manager, I work with clients who long for homeownership and need help with getting their finances together.
Not-So-Merry Credit Card Balances
Holiday-induced credit card debt is a growing problem in America. According to NerdWallet’s 2017 Consumer Holiday Shopping Report, more Americans find themselves in debt because of holiday purchases. If tackling credit card debt — especially with bloated balances due to holiday spending sprees — there’s hope. As a Daily Money Manager, I work with many clients in reducing debt and creating a more stable financial life. Ready to get started?
Impacting Many Seniors
Author Note: Lauren Davidson, a Millennial with student debt just trying to make a dent.
At $1.4 trillion, runaway student loan debt is now viewed as the next big bubble that could cripple the economy as the default rate continues to creep up. However, with all of the attention focused on the millions of young borrowers unable to pay their bills, buy a home, or start a family due to the heavy burden of student loan debt, the plight of older Americans has gone virtually unnoticed. As of 2016, more than 3 million people age 60 and older are struggling to meet their basic retirement needs as a result of carrying student debt. That is more than triple the number just a decade ago. Now with 10,000 Baby Boomers crossing the retirement threshold each day, it may be just the tip of the iceberg.
The Fed increased interest rates for the second time in three months on March 15. It’s made headline news. There have been hints of additional hikes in 2017. So what does this mean for the 157 million Americans who hold credit card debt?
What’s Real and What’s Not
Here in Silicon Valley things are booming. Our economy is experiencing growth. Home prices are surpassing historical records and the unemployment rate is low. You can see the frenetic energy every day — clogged freeways and expressways during our daily commutes and workers spending long hours tied to their desks.
With our economic upswing, are we using our financial success to pay down debt and use our credit wisely?