An exclusive interview with Dan Hultquist: Part 1
Federal Reserve Chairman Jerome Powell hints that a recession is likely in 2025. With inflation pushing prices 20-25% higher than they were three years ago consumers are racking up debt at an alarming rate while credit delinquencies surge. However, credit cards can only fuel consumer spending for so long until discretionary spending drops significantly. The New York Times reports that economists are increasingly concerned that consumer spending which fuels about 70 percent of our economy will slow. Concern is warranted with the average credit card interest being 24% as of May. Younger consumers have a few choices to right their financial ship outside of increasing their income. Yet, older homeowners may benefit from debt consolidation. To explain what consolidation is and how older Americans may use it to ease their financial burden we’ve brought back a popular guest on this show Dan Hultquist.
Shannon Hicks
Editor in Chief: HECMWorld.com
As a prominent commentator and Editor in Chief at HECMWorld.com, Shannon Hicks has played a pivotal role in reshaping the conversation around reverse mortgages. His unique perspectives and deep understanding of the industry have not only educated countless readers but has also contributed to introducing practical strategies utilizing housing wealth with a reverse mortgage.
Shannon’s journey into the world of reverse mortgages began in 2002 as an originator and his prior work in the financial services industry. Shannon has been covering reverse mortgage news stories since 2008 when he launched the podcast HECMWorld Weekly. Later, in 2010 he began producing the weekly video series The Industry Leader Update and Friday’s Food for Thought.
Readers wishing to submit stories or interview requests can reach our team at: info@hecmworld.com.
2 Comments
I do not agree with either “snow” example. My goal when paying off debts was to increase cash flow as quickly as possible and then use that higher cash flow to wipe out high interest rate debt. The.principle I used is a little harder to explain but gaining cash flow meant more to me than paying off small debts quickly (payoff satisfaction) or reducing costs (satisfaction from seeing expense reducing ). The principle that guided me when it came to paying down debt was “cash is king.”
Is the CFPB right when stating that when a HECM pays off an existing mortgage at closing it is simply replacing one debt with another? The fact is in that situation, a HECM INCREASES total debt as a result of its upfront costs. I know, I know to marketers, speaking facts kills deals but properly structuring a presentation should be able to.kill much of the shock of such a statement.
Debt is rarely a pleasant conversation to begin with but reverse mortgages can be much worse. Be careful how you structure your presentations but never run away from facts, that is exactly what creates a lot of the mistrust people feel toward all reverse mortgage originators.
Not sure what you are saying James– Of course reverse mortgages are debt–but paying with equity is very different than paying with cash. The preservation of cash is most important in retirement– what your net worth is– and your assets are not the most important thing when you are concerned about having money to live. As you said “cash is king”.
By the way, James– do you have a reverse or are you going to get one when you turn 62?