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It’s no secret that as a country, our debt levels have skyrocketed while our savings have plummeted. This unsustainable situation calls for decisive action, both on a personal finance level and a national economic policy level. In this post, I’ll break down the data on debt versus savings and what it means for your career prospects as a loan officer or realtor.
The Debt Versus Savings Crisis:
As the graphs illustrate, our revolving debt really started ballooning around 2010, while our savings declined steadily. We’re now at record low savings rates and dangerously high debt loads. This crisis has been brewing for years, but recently reached untenable levels.
What This Means for You:
For loan officers and realtors, this debt-ridden environment actually presents big opportunities. With savings depleted, many homeowners have likely been getting by with 3% mortgage rates. But as rates rise, those low rates will need to be refinanced or homeowners may sell their homes. You should start targeting homeowners with 3% rates to discuss their options. Be prepared for hard conversations about the mess some have made with finances.
Present Decisive Solutions:
Your clients need decisiveness and execution of a plan, even if immediate results disappoint. Debt consolidation refis align with the trend shown in the data. And housing inventory should rise as homeowners list homes with now-unaffordable mortgages. Position yourself as executing win-win solutions, not just chasing transactions.
Conclusion:
While uncomfortable, the debt crisis creates opportunities for loan officers and realtors to help clients. Study the data, create a plan, and have sincere conversations to uncover the right solutions. Although challenging, addressing issues head on is the only way forward.
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