Unlocking Financial Freedom:
Utilize Home Refinance for Debt Management

Across the country, many hard-working Americans find themselves grappling with mounting credit card debt. The most recent data from the Federal Reserve reveals that credit card debt has surged to an astonishing $1.03 Trillion in Q2 2023—a significant increase compared to the pre-pandemic level of $927 billion.

The Rising Credit Card Debt: With national credit card debt numbers on the rise, it's no surprise that individual credit card debt has also increased in 2023. According to the Federal Reserve's Q2 data, credit card balances have risen by $45 billion, reaching a record high of $1.03 trillion. Recent figures from Transunion show that the average credit card balance per consumer has increased from $5,010 in Q1 2022 to $5,733 in Q1 2023.

The Burden of High-Interest Rates: These changes in credit card debt become even more troubling when considering the current high-interest rates. The average credit card interest rate on accounts with balances that assessed interest was a staggering 22.16% in May 2023, according to the Federal Reserve. When combined with higher credit card debt levels, this can place a heavy financial strain on many households.

Auto Loans and Growing Debt: Auto loans are the third-largest portion of consumer debt at 9.2%. Americans frequently borrow money to purchase new and used vehicles. As of Q1 2023, the quarterly total for auto loans is close to $159 billion. Longer loan terms, especially for those with lower credit scores, result in paying more in interest fees.

Unlock Your Financial Potential: We encourage homeowners to consider a strategic move—refinancing their homes. The average rate on a 30-year fixed mortgage is currently 7.98%, and on a 15-year fixed-rate mortgage, it's 7.12%. For those with jumbo mortgages, the rate is 7.91% (as reported by USAToday). By refinancing, you can secure a more manageable mortgage rate and use the equity in your home to consolidate and pay off high-interest debts, such as auto loans and credit cards.

How We Can Help: As an experienced loan officer in the state of Texas, I am dedicated to helping you navigate the complex world of home refinancing. I understand the unique financial challenges faced by homeowners and can work with you to create a customized solution that allows you to pay off auto loans, credit cards, student loans, and other debts while securing a modest mortgage rate compounded over 360 months.