NEW YORK–As U.S. household debt rises and wages remain generally stagnant, a significant number of Americans say are thinking about tapping their home equity to keep up with day-to-day expenses.
Some 24 million homeowners said they believe borrowing against home equity is an acceptable way to cover regular bills, according to a new Bankrate.com report. Those most likely to borrow against home equity include cash-strapped Millennials, low earners and the less educated, the analysis found.
The study, conducted by research firm GfK, surveyed a national sample of 1,000 American adults—719 of whom were homeowners—from Sept. 7-9, Bankrate.com reported.
The survey found one-in-three homeowners who earn less than $30,000 per year say it’s OK to tap into home equity to cover their everyday bills, more than triple those who make $75,000 or more. Bankrate.com reported 21% of those with no more than a high school diploma agreed, nearly doubling those who have a college degree. And 22% of Millennials also felt home equity was an appropriate resource for paying bills, compared with just 12% of older Americans, BankRate.com said.
Meanwhile, about three-in-four homeowners said home improvements or repairs are an appropriate reason to borrow from home equity. Other reasons included debt consolidation and education expenses, Bankrate.com said.