Low-Income Families are Disproportionately Impacted by Rising Interest Rates

The Crowd Capital Fund offers an investment opportunity to investors interested in helping low-income families keep their homes when they are struggling to make ends meet

MIAMI, Nov. 9, 2022 /PRNewswire/ -- It's no secret that many American families are struggling to make ends meet. In fact, according to a study done by the LendingClub and PYMNTS, nearly "61% of Americans were living paycheck to paycheck as of June 2022." With the costs of everything from groceries to utilities continuing to rise due to inflation, it's not hard to see why so many households are struggling with their finances.

The U.S. Federal Reserve is doing its best to combat inflation by raising interest rates, but it is having an adverse effect on families that are already struggling to get by. Even the most insignificant increase in interest rates can make a major impact on low-income families in a few key ways:

1.       High interest rates make borrowing money more expensive
2.       Unemployment rates spike as interest rates slow the economy
3.       Rising interest rates make it harder to save for future needs
4.       The cost of owning a home has increased as interest rates surge

Recent studies actually confirm that after missing as few as three mortgage payments in a row, it becomes nearly impossible for families to recover financially and avoid foreclosure without some assistance. That's why the Crowd Capital Fund is dedicated to helping families get back on their feet.

The Crowd Capital Fund buys distressed mortgage loan debt at a significant discount and then works with homeowners to make their payment terms more affordable. The Fund then collects interest payments on the loan and resells the debt once the loan is stable.

Impact investments shouldn't come at the cost of low-or-no returns. Investors in the Crowd Capital Fund net 9-18% annualized returns (depending on the amount invested) while giving families a second chance to keep their home.

To read more about the struggles low-income families face due to rising interest rates, visit www.crowdcapital.io/blog/rising-interest-rates. To learn more about the Crowd Capital Fund, visit www.crowdcapital.io/fund.

About Crowd Capital: Crowd Capital is redefining second chances for home ownership by offering families at risk of foreclosure an opportunity to keep their homes and regain their financial health. Their Fund provides market-beating returns to investors.

SOURCE Crowd Capital