Do You Believe in Zombies?
Am I talking about already dead yet somehow alive corpses you see in the movies?
No, but what I am talking about are what the Federal Reserve calls “firms that are unable to generate enough profits to cover debt-servicing costs and that need to borrow to stay alive.”
According to Lisa Lee at Bloomberg that includes about 600 of the largest traded companies including American Airlines Group Inc and Carnival Corp.
As interest rates increase the cost of borrowing money to stay afloat may ultimately be the death of these corporations.
The next question is what about individuals and families who lose jobs or have hours cut back and are already struggling with student loans, auto loans, and double digit credit card interest rates?
We might call these people with Zombie finances.
According to Bankrate.com subprime auto loan delinquencies are at their highest rates since 2007.
John G. Merna, Esq at the Merna Law Group shares how a car can be repossessed even if your payment is just one day past your grace period .
We are talking about people who after the stress of two years of lockdowns are coming up to the surface to gasp some proverbial air, only to be pushed back down by circumstances beyond their control.
It makes sense to talk to a lender whether you are preparing to buy a house in the future or learning how to reduce financial stress amidst hard times today.
Most importantly, we are all at different points in life and what you are experiencing may be far different than what I am experiencing and we all need to be aware of the struggles of those around us.
That is just one of the many reasons why I love our company, Premiere Property Group, LLC.
We have what is called “The Circle of Giving” where we can give of our time, money, and household items.
It is set up to help those who are facing hard times, whether in our company or by pairing with local non profits, those in the community in which we work.