A recent update from the National Low-Income Housing Coalition found that over 60% of American households were in debt.
The study found that, while these debts were not unprecedented, they were the highest rates in history.
The average American household debt was $27,935.
Of those surveyed, 37% had $20,000 or less in debt, and 30% owed $20 million or more.
Among the debtors, 63% were men, and the median age was 37.
Only 12% of the households surveyed were in a “homeowner-occupied” household, meaning that the family was not living in the house itself.
While this may seem like a small number, it means that the vast majority of households are in a debt trap.
This is not to say that the average American can not manage to avoid default, as many do not want to lose their homes.
However, the average household can expect to pay off $6,600 in mortgage debt by 2027, which would leave a debt-to-income ratio of around 70%.
To put this into perspective, a person in the same situation today could likely take out $2,400 in student loans, or $30,000 in auto loans, and still have enough income to pay for a house, a car, and other basic necessities.
That said, even those who have little savings will likely be able to do this.
According to the report, an average homeowner would have $10,000 left over by 2026, which is well below the national average of $23,000.
Even if a homeowner defaults on all their debts, they could still have the financial ability to get a mortgage and pay down the mortgage.
To borrow money in the future, a homeowner should consider whether they can repay it all in the next 12 months, or whether they would need to reduce their monthly payments to avoid foreclosure.
In the event that they can’t, the government will assist with a payment reduction.
If they cannot afford to do so, they should consider refinancing to lower their interest rates, or to sell their home and buy a cheaper one.
For the average homeowner, refinancing will likely require a 30% down payment, which can be done with an auto loan or with a low-rate mortgage.
The good news is that many of these loans will have more than one repayment option.
There are also several mortgage refinancing options available, and refinancing is a good way to improve your credit score.
For example, a mortgage with a 0% down rate and a 20-year fixed-rate loan can be refinanced for about $3,500 a month.
Another option is a 30-year, variable-rate home loan with a 3.8% down and a 5.75% down.
Many borrowers will need to take out a home equity line of credit, but refinancing a loan is a great way to reduce the amount of credit they need.
Refinancing a home is a smart move, but it does require a commitment to do it well.
Another way to avoid a foreclosure is to refinance a smaller loan, which will allow you to lower your monthly payment.
One thing to keep in mind when refinancing: if you refinance, you may have to repay your previous loan before you can refinance.
Finally, it is important to note that the government does not guarantee your mortgage or your mortgage company.
So if you decide to refortigate, make sure you read the terms and conditions carefully.