Issue link: http://dsnews.uberflip.com/i/1020584
22 HOMEOWNERS LOSING SLEEP OVER RISING DEBT A third of Americans with debt are concerned about it but are also at a loss as to how to optimize their finances. at's according to a survey titled, "Climbing out of Debt: Finding Solutions for High-interest Problems," released by the mortgage lender and servicer Mr. Cooper. e nationwide online survey of more than 1,000 Americans with more than $500 in credit card debt was conducted in April, covering U.S. adults aged 18 years or older. A third of the respondents said they were losing sleep thinking about their debt situation, and nearly a quarter of those with a spouse or partner said their debt negatively impacted their relationship. While it's clear they want out from the debt trap, most respondents, the survey said, didn't know how to achieve that goal. More than two-thirds of respondents said it would probably take them more than six months to pay off credit card debt, while 15 percent expected it to take more than five years. Around 8 percent said they would never be able to pay off their debt, while 19 percent weren't aware of the interest rates on their main card. "Americans' credit card debt is skyrocketing, hitting a record high of $1 trillion earlier this year, and they're feeling stressed. But homeowners have options available to help them get out of this high-interest debt," said Jay Bray, Chairman and CEO of Nationstar Mortgage Holdings, the holding company for the Mr. Cooper brand. e survey also found a large majority (77 percent) carried their credit card balance from month to month rather than paying it in full, and half of the respondents said they did not have a budget to curtail on their credit card expenses despite the debt. Mr. Cooper said homeowners could look at tapping into their home equity to help them optimize their finances and deal with high- interest debts like credit cards. e survey found 44 percent of homeowners had more than $100,000 in home equity. "e Mr. Cooper customer base reflects similar data, with collectively more than $400 billion in home equity or an average of $100,000 per customer," the company said. "Many homeowners have the ability to use this equity to optimize their finances and save thousands of dollars every year." "At Mr. Cooper, we're dedicated to educating homeowners about how they can use their greatest asset—their homes—to lower their monthly payments, support their financial goals and escape the debt cycle that traps so many Americans," Bray said. As part of educating more customers, Mr. Cooper recently announced the launch of the Mr. Cooper With Home Intelligence mobile app to help homeowners make informed decisions about their financial health. e app provides insights into how much their home may be worth, the current state of their home equity, and how homeowners can use home equity and refinancing options to save money and get out of debt.