The Money Section | Homeowners feel trapped – here’s why

͏Also, see how inflation has impacted social security since 2000. ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ [The Charlotte Observer]( May 18, 2023 • Issue #33 [The Money Section] This week, we’re looking at some ways scammers target new homeowners with fraud attempts, the latest on student loan debt repayments and rate increases, and why a potential U.S. debt default might affect seniors. As rates decrease, refi applications surge. [Applications]( Getty Images Mortgage applications saw a 6% increase as homeowners and buyers took advantage of slightly lower mortgage rates. Refinancing applications experienced the biggest surge, reaching their [highest level since September 2022.]( ⛓️ Homeowners feel trapped. Low interest rates have trapped many American homeowners in their homes, driving up prices and leading to a shortage of available homes for sale. The reluctance to sell, fueled by the desire to hold on to low-rate mortgages, has made it harder for first-time buyers to enter the market. [Read more.]( 🚨 Beware of homeowner scams. Because every real estate transaction is public record, scammers often target homeowners after closing with fraud attempts. These can include home warranty scams, utility scams, and rental scams. [Here’s what you need to know.]( Student loan rates rising. [Rates]( Money; Getty Images Interest rates on federal student loans for the upcoming academic year are increasing, with undergraduate loans at 5.50%, graduate student loans at 7.05%, and PLUS loans at 8.05%. These rates are tied to the 10-year Treasury note and will go into effect on July 1. [Here’s what you need to know.]( 🎓 Student loan repayments are back. The US Department of Education plans to restart federal student loan repayments after a three-year pause due to the COVID-19 pandemic emergency. The resumption of payments is expected to occur sometime in October, with the Biden administration proposing to forgive up to $10,000 in federal student loan debt. [Read more.]( ⏸️ Student debt forgiveness on hold. The Biden administration's student debt forgiveness plan has faced challenges, including lawsuits that reached the Supreme Court. As borrowers await the court's decision, uncertainty looms regarding the promised $10,000 to $20,000 debt relief per eligible borrower. Meanwhile, the administration is [exploring alternative options.]( Retirees struggle amid inflation. [Costs]( Rangely García for Money Rising living costs have eroded the purchasing power of Social Security benefits, leaving retirees struggling to keep up with inflation, according to new research. The study shows that retirees 85 and older would need an extra $500 per month to match the buying power of their benefits in 2000. [Read more.]( 👴🏻 Debt default may affect seniors. With a U.S. debt default becoming more likely, Social Security advocates caution beneficiaries to be prepared for possible payment interruptions. While the outcome is uncertain, seniors may be affected since many rely heavily on Social Security income and have limited flexibility to handle disruptions. [Here’s what you need to know.]( 🙉 Don’t wanna hear about it. A new survey of more than 1,000 American adults found that 31% of 55- to 64-year-olds are not seeking retirement advice. Working with a qualified planner or advisor can bridge knowledge gaps and prevent costly mistakes that could [jeopardize retirement security.]( Smart Money Move Credit card debt hits a record $986 billion [Chain] [Chain]If you’re in debt, you’re not alone. The Federal Reserve Bank of New York reported that credit card balances hit $986 billion in the fourth quarter of 2022, based on nationally representative data, surpassing the pre-pandemic high of $927 billion. If you have more than $15k in unsecured debt, Debt Relief Programs could help you settle for less than what you owe by negotiating with creditors and debt collectors on your behalf. Services like debt consolidation, debt settlement, and credit counseling could help you resolve debt faster and lower monthly payments, freeing up funds to build savings and get back on your feet. [View our Best Debt Relief Programs]( list to find options with A+ BBB ratings and zero upfront fees. Stories we're reading this week - [Average Flight Prices to Europe Soar Past $1,100 This Summer]( - [Over 600,000 Student Loan Borrowers Have Had Their Debt Forgiven Thanks to This Program]( - [This Map Shows Which States Still Charge Sales Tax on Groceries, Diapers and Period Products]( - [Why the WGA is striking]( - [Divorce Can Wreck a Woman’s Financial Future. Here’s How to Rebuild.]( - [Who Is Linda Yaccarino, Elon Musk’s Pick for New Twitter CEO?]( The Money Section is written in partnership with Money Research Collective This email was sent to {EMAIL} because you are signed up to receive marketing emails or newsletters from The Charlotte Observer. If you no longer wish to receive emails of this type, you may [unsubscribe]( or [update your email preferences](. We are unable to monitor replies to this email. Please [contact customer service]( if you have any questions or concerns. [Privacy Policy]( | [Terms of Service]( | [View in Browser]( Copyright © 2023 The Charlotte Observer. All Rights Reserved. 9140 Research Drive, Charlotte, NC 28262