10 Things to Understand About the Housing Bubble and the Debt Crisis
RGE - 10 Things to Understand About the Housing Bubble and the Debt Crisis
At first, the HELOC was designed to solve the problem created by the elimination of interest deductions on consumer loans. Simply grant a lender a second mortgage on your home and suddenly, as long as you had less than $1 million in total home loans, you could deduct all of the interest on what really was a personal line of credit. Better yet, because it was secured, the interest charges were typically lower than on credit card debt. A great solution to the problem from lenders’ and consumers’ points of view, HELOCs became very popular and – by the end of the 90’s – ubiquitous. Homeowners soon realized, however, especially as home values began to rise more rapidly beginning in 1996, that they could qualify for HELOCs far exceeding the amount of credit card lines and other consumer debt they used to have.
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About Javier Marti
As an Independent Strategy Consultant, speaker and founder of Trendirama.com Consulting and SunshineHypnosis.co.uk, Javier is dedicated to help organizations, small businesses and individuals to optimize systems, increase profits and make better choices in business and in life. He is the author of the book "Mobile, Domains & The Future"
Javier also shares his knowledge and experience through information-packed and entertaining presentations in English and Spanish.
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