U.S. Consumers Still Face Financial Woes
April 14th, 2010
- Don’t Neglect Your Credit
- Depositor Bill of Rights
- Reverse Mortgages Could Help Seniors Struggling with Bills
- Reverse Mortgages and Long-Term Care Insurance
- Freak Accidents & Poverty
The U.S. job market has shown some improvement recently, but many people still face financial difficulties, according to Consumer Reports. Some seniors who find themselves struggling might find relief with a reverse mortgage.
Struggling to Pay Bills
The Consumer Reports Trouble Tracker Index rose to 63.5 in April, up from 52.3 in March, it’s largest month over month gain. The index looks at the proportion of consumers facing financial difficulties, as well as the number of hurdles they encounter.
Consumer Reports Index polled 1,260 people, and found that:
- 12.5% of people missed a payment on a major bill (not mortgage)
- 9.3% lost health-care coverage or had it reduced
- 16.6% were unable to afford medical bills or medications
- 12.1% had negative changes to credit-card terms, such as interest rates or penalty fees
People with incomes of less that $50,000 fared worse: 27.7% couldn’t afford medical bills or medications, 18.4% missed a payment on a major bill (non-mortgage), and 13.2% lost health-care coverage or had it reduced.
Reverse Mortgage Guidelines
If you are struggling like so many Americans, you may be wondering what is a reverse mortgage and how can it help your situation? Reverse home mortgages allow homeowners who are 62 and older to convert home equity into cash. The money you borrow is paid directly to you and doesn’t have to be repaid until you move or die. You won’t have a monthly mortgage payment, which frees up that money for other expenses.
Many people mistakenly believe that you can only borrow a reverse loan if you aren’t currently paying on a mortgage. The fact is that even if you still owe money on a mortgage, you might be able to qualify for a reverse loan. A housing counselor can discuss your eligibility and the pros and cons of reverse mortgage loans.