This is mostly all true. Here are some possible reasons (and this should ring a bell to pre-2008).
"Americans now have the highest credit-card debt in U.S. history"
http://www.marketwatch.com/story/us-households-will-soon-have-as-much-debt-as-they-had-in-2008-2017-04-03
As for HELOCs, it's important to understand the difference between acquisition debt and equity debt. Sounds complicated but here's an easy start and any homeowner thinking to refinance or take a 2nd (including heloc) ought to brush up on this.
http://www.washingtonpost.com/realestate/did-the-tax-code-overhaul-kill-home-equity-loans/2018/01/16/626f8054-facf-11e7-ad8c-ecbb62019393_story.html?utm_term=.ecaaf6278a0e
I read a previous article last month that even a cash out refi if not used primarily for home improvements would only partly qualify as acquisition debt, the part that is tax deductible.
I talked to my tax accountant about this, and anyone taking a cash out or heloc ought to do the same. Her response was things are still up in the air, and how would the IRS know what you did with the money. Sooo... even people who are aware of this may be squeaking by while the door is still cracked open. Hard to tell. LO's are not allowed to give tax advice. Thank god! |
