Your Money: Home equity, paying off debt and more
Gregory Schmidt, who reports on real estate, tells us about how homeowners are using home equity.
Your Money
August 10, 2026

Welcome back.

Consumer spending, the backbone of the U.S. economy, has continued to be robust, despite stubborn inflation and geopolitical uncertainty. The result is higher credit card balances, which climbed 6 percent to $1.25 trillion in the first quarter of 2026 from the year before, I report in an article coming out Tuesday morning.

But Americans have built up a whopping $35 trillion in home equity, according to the Federal Reserve. The stockpile of wealth is primarily the result of a moribund housing market, and many homeowners are tapping into that nest egg to climb out from under a mountain of debt.

“Sometimes I see upward of $80,000 to $90,000 in credit card debt,” Stacy Melton, a mortgage broker in Arizona, told me. She helps them refinance their home loan to pay off their credit card debt and get “a little bit of breathing room as well.”

If you own a home, have you tapped your home equity? If so, for what purpose? You can tell us at Yourmoney_newsletter@nytimes.com.

Below, you’ll find a selection of money-related stories from across The New York Times. Have a great week.

An illustration shows two floating hands, one of them shaking a pill bottle containing exercise and sporting equipment into the other hand.

retiring

Costco, Kayaks and Netflix: Medicare Advantage’s Perks Get Scrutiny

Officials said no to health plans that wanted to expand extra benefits to cover medical marijuana, streaming services and shopping clubs. More changes are coming in 2027.

By Susan Jaffe

Education Dept. to Wipe Out Student Loans of 170,000 More Defrauded Borrowers

The sprawling case, centered on students defrauded by for-profit schools, has now become the largest class-action settlement in American history.

By Stacy Cowley

Oil Prices Climb on Stalemate in Strait of Hormuz

Hopes were dashed over the weekend for a breakthrough on shipping traffic through the critical waterway in the Persian Gulf.

By Veronica Majerol and Jason Karaian

Labor Market Shifts Into Reverse as Employers Balk at Hiring

A spring surge rapidly faded as the summer brought higher prices and more uncertainty for businesses, even as they avoided layoffs.

By Lydia DePillis

Kevin M. Warsh, the chairman of the Federal Reserve, wears a blue suit, light shirt and dark tie, and stands between an American flag and a Fed flag in front of a blue curtain.

Weak Jobs Report Does Not Eliminate Prospects of a September Rate Rise

Officials at the Federal Reserve are chiefly focused on the trajectory of inflation after five years of overshooting the central bank’s 2 percent target.

By Colby Smith

An illustration of a percentage sign with various red figures walking through it or sitting on it.

Strategies

The Bond Market Is Signaling Rising Risks. Investors Should Listen.

While the Fed didn’t raise rates, the bond market did. That means hardship for home buyers and higher hurdles for A.I. data centers and the stock market. But it’s also a boon for retirees.

By Jeff Sommer

McDonald’s U.S. Sales Slow as Diners Spend More Cautiously

The fast-food giant replaced its president of U.S. operations, aiming to bring “focus and urgency” to a revamp of its outlets.

By Julie Creswell

An illustration depicts a person in a sun hat sitting under an orange striped umbrella on a dock that juts into blue water. At the edge of the dock, a robot-like figure holds a fishing line, trying to hook "deals" in the form of circles with things like price tags, hotels and airplanes in the center of them.

Frugal Traveler

Can A.I. Get You Where You Want to Go for Less?

A wave of new services uses A.I. to monitor flights and hotel reservations to help you find lower prices. We look at how these tools work.

By Elaine Glusac

A man in a checkered button down shirt sits on a couch.

Affording New York

How a Student and Gig Worker Lives on $11,400 in the Bronx

Richard Sencion, 24, cobbles together funds from delivery jobs and bartending gigs while searching for more permanent work and living with his parents.

By Davaughnia Wilson

Jim Zelter sitting in a chair and gesturing with his hands while speaking.

Private Equity Is Stuck With 33,575 Unsold Businesses

Even amid a booming deal-making environment, private equity firms are unable to exit a growing number of investments at values their investors require.

By Maureen Farrell

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