Credit Repair Attorney

One of the most popular financial strategies that home owners have employed in recent years was to take out a line of credit against the equity in a home.  As property values skyrocketed early in the 21^st Century, this step was taken by homeowners all over the United States.  However, according to an article posted recently by Reuters, late payments for one form of home equity credit lines rose sharply in the last quarter.

“Late payments on U.S. home equity lines of credit rose to a 5-1/2 year high in the second quarter of 2007 but delinquencies on many other types of consumer loans fell, the American Bankers Association said on Wednesday.

In its quarterly report on consumer borrowing, the bankers group said delinquencies in repaying home equity lines of credit rose to 0.77 percent in the April-June period.

That compared to a rate of 0.60 percent in the first quarter and represented the highest rate since the fourth quarter of 2001 when the rate was 0.81 percent.”

For many, these lines of credit represent a ticking time bomb in a financial context.  If you need help with your credit, contact the credit repair attorneys at Smith & Garg today to schedule an initial consultation.