How bad are U.S. consumers when it comes to meeting financial goals?

hshcom slackersby Dan Rafter

When consumers are happy and financially healthy, the commercial real estate industry soars. That’s why a new poll by mortgage Web site HSH.com is so troubling.

According to the poll of 1,905 U.S. adults, 40 percent of consumers last year failed to take any actions to improve their financial health. This chunk of consumers didn’t refinance their mortgage loans, pay off credit card debt, boost their credit scores or put away extra funds for retirement.

Keith Gumbinger, vice president with HSH.com, said that he was surprised that more consumers did not attempt to refinance their existing mortgage loans. After all, mortgage interest rates were still at historically low levels throughout 2014.

“It’s a shame that more homeowners didn’t make any efforts to trim their mortgage costs,” said Gumbinger in a written statement.

Here are the other rather depressing numbers from the survey:

Only 26.6 percent of homeowners with mortgage balances saved money for retirement in 2014.
3.04 percent paid extra on their mortgage loans.
23.92 percent paid off credit card debt.
24.24 percent improved their credit score.

And for 2015? It looks like most U.S. consumers will again do little to improve their financial health. According to HSH.com:

Only 8.97 percent of consumers with a mortgage balance plan to refinance their loans in 2015.
32.74 percent plan to save more for retirement.
11.64 percent said they would pay extra on their mortgage loans.
29.85 percent said they would pay off credit card debt.
27.75 percent said they would take steps to improve their credit scores.

If you want to learn more about the study, and the weak efforts of U.S. consumers to boost their financial standing last year, check out this link.

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This entry was posted in national commercial real estate, residential real estate and tagged , , , . Bookmark the permalink.

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