The holiday season is approaching fast, and many New Yorkers will be faced with mounting seasonal expenses including gift purchases, entertaining, and travel.
Lenders are in a unique position to assist New Yorkers, thanks to the average $300,000 in home equity that homeowners in New York hold. Help homeowners ease the financial burden heading into the new year by providing solutions for tapping into their home equity.
HELOCs offer a simple way for homeowners to consolidate their holiday debt into one manageable payment, and give lenders a financial relief product to meet seasonal consumer needs. Figure Lending LLC’s HELOC can help your New York customers access up to $400,000.3navigates to numbered disclaimer
Offer your New York customers instant, personalized offers with a 100% online application.
Why HELOCs are the solution for holiday debt consolidation
The holiday season often is accompanied by rising expenses, and many New Yorkers turn to credit cards or personal loans to manage these costs.
The average credit card interest rate is over 28%, which results in high-interest debt that carries over into the new year. Many consumers rely on multiple credit cards to manage expenses, leading to compounded interest and financial strain.
Rather than seeing homeowners get trapped in another cycle of debt, lenders can help them manage holiday expenses more effectively with a lower-interest, tax-deductible HELOC payment.
More consumers are turning to HELOCs for holiday debt consolidation
According to a recent customer survey, 29.8% of 631 respondents used a HELOC for debt consolidation.
Prior to choosing Figure Lending LLC’s HELOC, respondents shopped for the following alternative financing solutions:
Personal loan (43.5%)
Loan from a bank (28.6%)
Mortgage (15.2%)
Credit card (12.7%)
Figure Lending LLC’s HELOC is a superior alternative because it offers lower interest rates than personal loans or credit cards. Additionally, homeowners who still have mortgage payments will not need to touch their current home mortgage to access their equity.
Intellidebt: Simplify and streamline the debt management process
Figure Lending LLC’s Intellidebt tool is a beneficial option for lenders and your customers as it allows them to pay off high-interest-rate debt using HELOC proceeds.
According to our data, the average customer’s HELOC application amount was nearly $75,000, with approximately 30% of the funding applied to their high-interest debts via Intellidebt.
Intellidebt allows them to see and select which debts they’d like to pay off. Then, Figure Lending LLC facilitates payment directly to the creditors. Within one smooth process, borrowers can use a portion of their lower-rate HELOC to pay off debts and significantly lower their overall debt burden.
On average, Intellidebt users benefited from the following:
Monthly debt payments reduced by an average of $500-$600
29 point increase in their FICO scores
Lowered APRs on credit cards and personal loans
Help your customers consolidate debt into a lower monthly payment, while potentially qualifying for a higher loan amount and the ability to access more cash from their equity.
This is particularly helpful during the holiday season, when consumer debt is piling up and homeowners are looking to start the new year with improved financial health.
Consumer behavior during the holidays
A holiday spending report from NerdWallet found that 28% of shoppers who used credit cards have not paid off the presents they purchased last year.
According to the National Retail Federation, spending between Nov. 1 and Dec. 31 is expected to increase to a record total of $979.5 billion to $989 billion.
Credit card debt is already at $1.14 trillion in 2024. Homeowners don’t need to wait until the new year to tackle holiday debt. Lenders can get ahead of consumer trends by offering HELOCs now, helping consolidate debt and increase financial flexibility.
HELOCs for holiday debt consolidation: NY HELOC example
Imagine a homeowner in Queens who is juggling rising expenses as the holiday season approaches.
Between buying gifts for family, hosting a holiday party, and traveling last year, they accumulated $8,000 in credit card debt with an interest rate around 24%.
Using Figure Lending LLC’s streamlined, fully digital HELOC process, they’re able to tap into their home equity and access a portion of the $250,000 they have built up since purchasing their home several years ago. They consolidate the $8,000 in credit card debt into one lower-interest payment at a manageable rate, which significantly reduces their monthly payments. Plus they access additional cash to cover this year’s holiday expenses.
Now, they can enjoy the season without worrying about their increasing credit card balance and enter the new year in a stronger financial position.
Figure Lending LLC’s AI-powered solutions: Speed and efficiency during the holidays
Homeowners want easy, digital solutions in today’s market, and lenders need more opportunities during slower purchase and refinance seasons, such as the holidays.
Our HELOC program ticks all the boxes, helping lenders originate and close loans more quickly while giving homeowners maximum access to their equity in a simple, streamlined format, including:
Personalized fixed rate1navigates to numbered disclaimer in as fast as 5 minutes2navigates to numbered disclaimer
HELOCs range from $15,000 to $400,0003navigates to numbered disclaimer
100% online application for homeowners with automated underwriting and fulfillment
Digital HELOC branded in your company’s name or easily brokered
Advanced AI technology that reduces manual work and increases speed and customer satisfaction across the loan origination and purchasing processes
Figure Lending LLC’s HELOC is now available across the entire east coast, covering 49 states and Washington D.C.
Learn more: How to Build a Successful Lending Business
Beat the holiday rush with Figure Lending LLC
It’s time to get ahead of the holiday rush and show New York homeowners how they can make the season a lot smoother.
Partner with us to offer a streamlined HELOC solution that meets your customers’ needs.
