MoneyWise Live


Consumer Debt Rising

February 6, 2019

There’s no doubt about it, the U.S economy’s going gangbusters. 4% GDP growth, 50-year unemployment lows even the stock market is still strong despite recent setbacks. But it’s not all sunshine and lollipops.  Economists have found a dark cloud in the silver lining. Americans have more consumer debt than ever and it’s largely due to the booming economy. Financial planner and teacher Rob West has details and explains why this matters to you. 

  • This may be the best economy we’ve had in decades so why are we raining on the parade and talking about debt?
  • Doesn’t that also show the rising mortgage debt indicating that more people are now able to purchase homes? And isn’t that a good thing?
  • With wages starting to rise, you’d expect to see the savings rate go up, but it’s trending in the other direction?
  • So what does all this mean for us as individuals today?

Next, Rob and Steve answer these questions at 800-525-7000 or via email at Questions@MoneyWiseLive.org:

  • If you have two mortgages and one is now ended up a rental with $60,000 equity in a $200,000 home, should you sell the property and invest or keep it as a source of income?
  • If you've determined you would save almost $30,000 to defer tithing and pay a $95,000 mortgage early, then step up your tithing afterwards, is that a good idea?
  • If you have both term and whole life insurance policies, should you keep them both?
  • How should you prioritize your resources: 1.) pay extra on your mortgage, 2.) save for retirement or 3.) fund college for your children?
  • If you're debt-free except for student loan and home, should you concentrate your resources toward student loan debt or starting your son's college fund?
  • When taking distributions out of mutual funds, how do you calculate tithes?
  • What is the difference between an annuity and an IRA?
  • If you have a rental property that you've put about $27,000 into for roof and electrical, should you claim that as a depreciation or expense?

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