Credit crunch fall out

[Stephen Rinaldi]

I dont know about everyone else but there has been a uneasiness in the air recently, many of my clients with rates in the 2.7-3.7% range have been inquirng about HELOCs and/or cash out refinances.  As I do some digging the credit card debt Im seeing is outrageous.  People who generally speaking are unable to keep up with their obligations.

I question whether thats where the swing in inventory comes from, people who cannot maintain their bills or access their equity decide to sell as a last resort.  Family average of cc debt has risen from 3k to 7k recently and its expected to go to an average 12k by December 2023..  this is something to keep an eye on.

[Chris Seveney]

@G Pyros

Banks have continued to slow down lending. The only options potentially are credit cards which are very high rates. The days of getting a HELOC are very slow to come and last few years people rode the HELOC ride and got it to pay off other debt and now are racking that debt back up.

We buy distressed debt and we are seeing increase because of what I noted above