With the holidays near, for some, the financial stress of having to pay for it all can be overwhelming. Many anticipate paying off their holiday debt within 3 months; but for others, it could take more than 5 months.1 From hosting out-of-town guests, traveling to see family, attending holiday gatherings, to gift-giving, this time of year can leave you frazzled before the festivities even begin.
According to the 2019 Bankrate Holiday Gifting Survey, more than 6 out of 10 people felt pressure to overspend on presents, travel, social outings or charitable donations during the holiday season.2 The average consumer is expected to spend around $1,007 during the holidays this year.3 With websites and social media filled with photos of what’s considered the ‘perfect gift’ or ‘perfect holiday moment’, this can make people feel like they need to keep up which can lead to overspending.
Furthermore, many families who want to spend the holidays together will need to travel to be with loved ones, which can lead to added expenses. Forty-five percent of Americans, some 114 million adults, expect to spend cash on flights and/or hotels over the holidays, shelling out an average $1,393 in total.3
To alleviate overspending, consider some of these creative alternatives which can leave more money in your pocket and let you enjoy the holidays without feeling like you’ve been fleeced.
If you are 62 years or older, a reverse mortgage loan can help you unlock the equity in your home and give you access to cash through a lump sum (only available on the fixed product), monthly payments or even a line of credit. Furthermore, it can help you increase your monthly cash flow by eliminating your existing monthly mortgage payments.5
If your bills from the holidays or other debt are causing you financial stress, a reverse mortgage may help. To find out if this is an option for you call 1 (800) 976-6211 to speak with a licensed loan advisor.
5 Your current mortgage(s) and any other existing liens against the property must be paid off at or before closing. You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.