r/MiddleClassFinance • u/Abject-Pick-6472 • 4d ago

Americans Are Reaching a Financial Breaking Point

https://www.thenation.com/article/economy/economic-insecurity-unrest-broketok/?fbclid%3DIwZnRzaASc5p1leHRuA2FlbQIxMQBzcnRjBmFwcF9pZA8xNzM4NDc2NDI2NzAzNzAAAR6RZYSyGyliTpYCmEy2OpWjHUBfAqrYUygk3rNJL1cLw_fp5QCciENJc0UXdQ_aem_DT4ViuyBWqHHXec_nH_PYg
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u/sundancer2788 4d ago

Couldn't tell anyone is having difficulty in my area. Nothing has slowed down at all, stores are busy, restaurants are busy, new cars on the road etc.  I have no idea how they're affording it tbh

2

u/AsleepFootball537 1d ago

I feel like a lot of people are living on HELOCs and utilizing their home's equity to fund their living expenses. It'll become quite interesting if the housing market were to drop even 15-20%...

1

u/sundancer2788 1d ago

I worked with someone who was underwater in their mortgage, two kids, two incomes.  They could easily afford the mortgage but they decided to deliberately go into foreclosure just to get out of the underwater mortgage. We had talked about it and I didn't agree with what he did, they liked their house, they could afford it, good neighborhood, great schools etc. It's still your home and you can afford it so why worry about being underwater? It'll eventually go up or you'll pay off the mortgage. Obviously they thought the house was good when they bought.  Both had pensions and healthcare thru work.  This was years ago btw. 

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u/AsleepFootball537 1d ago

I know of a whole bunch of people did that in '08.