Today's home-equity borrowers will not be able to spend this particular nest-egg when they are older.
The totals include bank-issued and retail credit cards, auto loans, consumer-finance loans, home-equity lending and student loans.
Home-equity and installment loans are increasing, and credit-card volume grew because of "better-than-expected spending, " Mr. Kim added.
Traditional home-equity loans mostly charge fixed rates, and the borrower gets the money in one lump sum.
Rates on home-equity loans and lines of credit average about 6.4% and 5.1%, respectively, according to Bankrate.com.
And the lifeline provided by home-equity loans is increasingly constricted, as damaged banks cut back on pre-arranged credit lines.
Home-equity lines of credit allow borrowers to tap the credit line as needed, and the rate is typically variable.
We're talking the same cost as a home appliance vs. a home-equity loan.
Many banks have transferred credit-card loans to home-equity loans, which are tax-deductible for the borrower and offer collateral for the lender.
In this case, the trusting widow had two home-equity lines of credit that were opened shortly after Boleancu became her financial advisor.
The home-equity requirement is one of the toughest hurdles, says Mr. Feldstein.
It stuffs the monthly account statements with encouragement to take out car loans as well as home-equity loans and other mortgage debt.
Anti-Deficiency Statutes often only work for original purchase money loans, and not for re-financed loans, or for home-equity lines of credit (HELOCs).
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Wholesale lenders competed aggressively for market share by undercutting the banks and creating sexy new mortgage products like home-equity, interest-only and low-documentation loans.
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Ms Whitney argues that small-business owners big users of credit cards and home-equity lines face a severe credit crunch as these crutches get yanked away.
The personal-loans market may also provide a launch-pad for other retail-finance businesses that are underdeveloped in Japan, such as credit cards and home-equity loans.
It has become easy for them to turn an increase in the value of a house into spending money by taking out a home-equity loan.
In Britain home-equity withdrawals added the equivalent of 3% of post-tax income to households in the fourth quarter of 2007 but subtracted 3% a year later.
They buy some food at discounted prices through their church, but are proud they have remained current on their mortgage, home-equity loan, insurance and property taxes.
People who took out home-equity loans before the crash and put the cash into conservative savings vehicles instead of toys in effect hedged themselves against disaster.
But student debt is quickly rising, in part due to higher tuitions, but also because alternative ways of paying for college such as home-equity loans have dried up.
However, for tax filers who are subject to the alternative minimum tax, home-equity interest deductions are allowed only when that debt is spent on home improvements.
In December, the federal government rolled out a revamped version of the Home Affordable Refinance Program with relaxed home-equity requirements, to allow more borrowers to refinance.
This is reminiscent of the housing bubble and crash where home-equity borrowing soared only to later see homeowners saddled with debt and crushed by falling home prices.
Thus both home-equity lending and mortgage refinancing, which allow households to tap into the capital gains on their homes, have helped to support consumer spending during the recent downturn.
In the United States 69% were homeowners in 2007, with 70% of them carrying some debt on the property, in the form of a mortgage or a home-equity loan.
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The SEC said he went to great lengths to conceal his trading which was financed in part with a home-equity line of credit using seven brokerage accounts that weren't in his name.
By contrast, the national average rate for a home-equity line of credit is 5.15% and for a 30-year "private" jumbo mortgage it is 4.08%, according to HSH.com, which tracks the data.
For that reason, financial advisers continue to advise borrowers to exhaust every other option a home-equity line of credit, a loan from a family member or a high-interest credit card before pawning anything.
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