Rising debt levels and defaults on financial obligations may compound the impact of new property tax assessments in Nassau County. New tax hikes may even be responsible for pushing up some of these delinquencies.
Many are clearly having to choose between which bills to pay again. Their incomes just can’t cover it all. Performance of student loans, auto loans, mortgages and property tax receipts are going to get worse. Yet, consumer spending and debt is expected to rise while people still have access to it. People are trying to borrow to cover other bills. Shifting debt around, but it just grows. It will be worse with rising interest rates, which will make all those debts more expensive than thought. Especially with intro deals going away and mortgage payments going up too.
The NY Fed reports that 7 million Americans are now 90 days or more late on their car loans. That’s the most in almost a decade. It doesn’t include all those still in default and less than 90 days late.
Americans also owe over $1.4T on student loans. Far more than on credit card debt. Almost 70% of students are taking on debt, as well as parents taking on loans to fund schooling. The average monthly student loan payment is almost $400 per month. 11.5 percent are now 90 days or more late on their payments.
According to Zillow, 4.5% of homes in Nassau County, NY are already in a negative equity position, and the market has clearly shifted in favor of buyers, not sellers. 2.2% of owners with a mortgage are in default. 12.6% of owners have been slashing their asking prices.
In our coverage last week we saw that many local property owners could see their property tax bills going up by over 50% next year. When people fold and don’t pay taxes, or require more public services, then taxes need to go up more. That burden is shifted to fewer taxpayers. Those who can’t afford the hike, may forgo payment, but will lose their house or business. It’s a compounding downward spiral.
Don’t get caught up in it. Get help. We can help you lower your property taxes and save your home!