“The new federal tax law created a lot of confusion over whether tax filers may still deduct the interest they pay on their home equity loans and home equity lines of credit.
“The new law suspends the deduction for interest on home equity indebtedness for the next eight years.
“But it turns out the suspension does not apply to all home equity loans (HELs) and lines of credit (HELOCs). It just applies to those that are used to pay for non-home-related things, like paying off your credit card or buying a car. But you can still deduct home equity loan interest that is used to pay for home improvements…”
Americans are saving faster than they are spending.
“It’s a key shift in spending habits that started during the Great Recession. And the trend continues as we head into the holiday shopping season this weekend.
“The savings rate in the United States rose to 5.6% in October — its highest mark in nearly three years. In September, the savings rate was 5.3%. Put another way, Americans put aside an extra $40 billion in October rather than spend it.
“The personal consumption expenditure, a measure of spending, only rose 0.1% between September and October…”
This article is from CNN Money. Read more of this article at CNN Money here.