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Just to be clear, the advice most likely is not to incur a debt, it's to acquire a line of credit. That's all a HELOC is. It doesn't become a debt until you have a need for the money and actually access your LOC. Ergo, you would never "have a debt (you) don't need."
I have two Visa cards, each with credit access lines of over $50k. That doesn't mean that I have incurred a $100k debt that I don't need.
I thought you had to borrow a bit of money (not much) every year to maintain a HELOC? So, it is debt, albeit a small one.
Simple, a HELOC charges higher interest rate than a mortgage.
Also, if you missed payments in HELOC your home will get foreclosed just like missing payments in a mortgage but with a much smaller amount. So I prefer to take out a mortgage instead.
Wells Fargo estimates $2.4 trillion in excess savings has been accumulated by consumers since the beginning of the pandemic. Given that consumer spending accounts for about 68% of GDP. The question is will those savings be spent as we return to normal and continue to drive the recovery
Wells Fargo predicts, "Lower income households quickly run down their savings. They will pay off mortgages, loans, and buy things that they 'need'. Savings of higher income households are likely to not be put back into the economy. Higher income households have lower marginal propensities to consume and are more likely to invest the savings."
Wells Fargo estimates $2.4 trillion in excess savings has been accumulated by consumers since the beginning of the pandemic. Given that consumer spending accounts for about 68% of GDP. The question is will those savings be spent as we return to normal and continue to drive the recovery
Wells Fargo predicts, "Lower income households quickly run down their savings. They will pay off mortgages, loans, and buy things that they 'need'. Savings of higher income households are likely to not be put back into the economy. Higher income households have lower marginal propensities to consume and are more likely to invest the savings."
If a person already has enough to buy what ever they want giving them more money will probably just give them more to save. That played out many times during recent government give a ways.
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The Numbers Tell The Tale
