Debt Reduction- Advice On Credit Card Debt Reduction, Debt Reduction Services, And Debt Reduction Plans

Rick asked:


1.An economist who favors smaller government would recommend:
a.tax cuts during recession and reductions in government spending during inflation.
b.tax increases during recession and tax cuts during inflation.
c.tax cuts during recession and tax increases during inflation.
d.increases in government spending during recession and tax increases during inflation.

2.An appropriate fiscal policy for severe demand-pull inflation is:
a.an increase in government spending.
b.a reduction in interest rates.
c.depreciation of the dollar.
d.a tax rate increase.

3.A major advantage of the built-in or automatic stabilizers is that they:
a.simultaneously stabilize the economy and reduce the absolute size of the public debt.
b.automatically produce surpluses during recessions and deficits during inflations.
c.require no legislative action by Congress to be made effective.
d.guarantee that the Federal budget will be balanced over the course of the business cycle.

4.The standardized budget tells us:
a.that in a full-employment economy the Federal budget should be in balance.
b.that tax revenues should vary inversely with GDP.
c.what the size of the Federal budget deficit or surplus would be if the economy was at full employment.
d.the actual budget deficit or surplus realized in any given year

Brendan

Didier Drogba asked:


And then require any surplus to be used to buy back state debentures?

Over time, tax revenue typically rises faster than that. And what happens is that when the money rolls in, the politicians dream up new ways to spend it.

But there’s no logical reason for state spending to increase faster than the rate of inflation.

There’s no need for a state to spend more in 2009, in constant dollars, than it spent in 2005 or 2000.

And even with revenue down from last year because of the recession, it’s still a lot higher, in every state, than what that state spent in 2000, in constant dollars.

Politicians’ inability to control themselves is, then, the structural reason for the deficits.

So why not eliminate budget crises altogether by capping state spending growth?

This would require no cuts at all.

It would simply preclude new pork.

If some new “need” developed (keep in mind that states don’t fund wars and that most “emergencies” are responded to by the federal government), existing pork could be cut to make up the difference.

Keep in mind also that if there were a surplus and a reduction of state debt, that would fuel private sector growth and reduce interest rates, thus reducing the likelihood of such a “need.”

Seymour Lowhorn

Josh R asked:


Background:

My long-time girlfriend and I are considering buying a home together within the next 1-3 years. She owns a condo that she bought before we started dating. Currently we live together in a rented apartment, and she rents out the condo. Unfortunately, the condo is cash-flow negative, and because of the real estate crash, it is now underwater and she would not be able to sell it.

How would the mortgage on the condo and income from renting it be accounted for if we applied jointly for a mortgage on a new home for us?

Her monthly PITI payment on the condo is something around $1250 and it is currently renting for $1025/month.

So, how does this get accounted for? Would the $1250/month be added to our monthly debt obligations (which are otherwise pretty low, around $500/month between us), and the $1025 be added to our monthly income (with some reduction made to account for potential vacancies in the condo)? I.E. if our combined income and debt obligations besides the condo were $14k and $0.5k respectively – would the condo change those to something like $14.75k and $1.75k?

Or, do we simply count the amount of the negative cash flow towards monthly debt? In this case, our income would stay at $14k, but the negative cash flow of ~$450/month (monthly rent x 12, minus 20% for vacancy, subtracted from PITI on condo) would bring our monthly debt obligation to only $950.

Clearly, the way you account for the condo makes a big difference to how well qualified we are as borrowers – so how would a mortgage lender account for it?

A couple more notes:

- living in the condo isn’t an option.
- selling the condo at a loss isn’t an option.

Thanks!

Ezra Alexandropoul

Nick asked:


The two ‘architects’ of the bill, Barney Frank and Chris Dodd, both Dems, both corrupt. Re-Seeding the Housing Mess

Once again the corrupt desperate Democrat party is trying to use funds that do not belong to them for their own gains.

Here’s the exact, amazing language from the Democratic proposal, breaking out how the money would be divided and dispensed:

“Deposits. Not less than 20% of any profit realized on the sale of each troubled asset purchased under this Act shall be deposited as provided in paragraph (2).

“Use of Deposits. 65% shall be deposited into the Housing Trust Fund established under section 1338 of the Federal Housing Enterprises Regulatory Reform Act . . . ; and 35% shall be deposited into the Capital Magnet Fund . . .

“Remainder Deposited in the Treasury. All amounts remaining after payments under paragraph (1) shall be paid into the General Fund of the Treasury for reduction of the public debt.”

What we have here essentially are a pair of government slush funds created in July as part of the Economic Recovery Act that pump tax dollars into the coffers of low-income housing advocacy groups, such as Acorn.
Acorn, one of America’s most militant left-wing “community activist groups,” is spending $16 million this year to register Democrats to vote in November. In the past several years, Acorn’s voter registration programs have come under investigation in Ohio, Colorado, Michigan, Missouri and Washington, while several of their employees have been convicted of voter fraud.

Along with other potential recipients of these funds, including the National Council of La Raza and the Urban League, Acorn has promoted laws like the Community Reinvestment Act, which laid the foundation for the house of cards built out of subprime loans. Thus, we’d be funneling more cash to the groups that helped create the lending mess in the first place.

This isn’t the first time this year that Democrats have tried to route money for fixing the housing crisis into the bank accounts of these community activist groups. The housing bill passed by Congress in July also included a tax on Fannie Mae and Freddie Mac to raise an estimated $600 million annually in grants for these lobbying groups. When Fannie and Freddie went under, the Democrats had to find a new way to fill the pipeline flowing tax dollars into the groups’ coffers.

This is both unethical and in detriment to our economy, the Dems will do anything and everything to get their inexperienced candidate elected at the cost of our great country.

http://online.wsj.com/article/SB122247015469280723.html

This is Wall Street Journal article, and not from Fox News, for all the liberals who deny it is factual.

Newton Leatherberry

mistersir asked:


I met someone on an airplane and he told me about it, he does this for a living so im sure it bias, what the real scoop. Im in a debt counciling service now, and he pulled up my credit report still said late payments.

Jc Filipponi

Confused5821 asked:


The following is an excerpt from Lucent
Technologies’ Management’s Discussion and
Analysis of Financial Condition and Results
of Operations:
Executive Summary
We design and deliver the systems, software
and services that drive next-generation communications
networks. Backed by Bell Labs
research and development, we use our
strengths in mobility, optical, access, data and
voice networking technologies, as well as
services, to create new revenue-generating
opportunities for our customers, while
enabling them to quickly deploy and better
manage their networks. Our customer base
includes communications service providers,
governments and enterprises worldwide.
We have three segments organized
around the products and services we sell.
The reportable segments are Integrated Network
Solutions (“INS”), Mobility Solutions
(“Mobility”) and Lucent Worldwide Services
(“Services”). INS provides a broad range
of software and wireline equipment related
to voice networking (primarily consisting
of switching products, which we sometimes
refer to as convergence solutions, and voice
messaging products), data and network
management (primarily consisting of access
and related data networking equipment
and operating support software) and optical
networking. Mobility provides software and
wireless equipment to support radio access
and core networks. Services provides deployment,
maintenance, professional and managed
services in support of both our product
offerings as well as multi-vendor networks.
Beginning in fiscal 2001, the global
telecommunications market deteriorated,
resulting from a decrease in the competitive
local exchange carrier market and a significant
reduction in capital spending by established
service providers.This trend intensified
during fiscal 2002 and continued into fiscal
2003. Reasons for the market deterioration
included general economic slowdown, network
overcapacity, customer bankruptcies,
network build-out delays and limited availability
of capital.
We believe that the market for telecommunications
equipment has stabilized
and is starting to grow in certain areas. The
growing demands of enterprises and consumers
for additional services tailored to
their needs is creating the need for a new
convergence of networks, technologies and
applications.
Required
1. Using the Consolidated Balance
Sheets for Lucent Technologies for
September 30, 2004 and 2003, prepare
a common-size balance sheet.
2. Evaluate the asset, debt, and equity
structure of Lucent Technologies, as
well as trends and changes found on
the common-size balance sheet.
3. What concerns would investors and
creditors have based on only this
information?
4. What additional financial and nonfinancial
information would investors
and creditors need to make investing
and lending decisions for Lucent
Technologies?
C A S E S
Case 2.1 Lucent Technologies
Understanding

Aileen Gren

Pete asked:


Biggest interest or smallest balance first? I am using the smallest balance method first and the rewards of eliminating one card at a time is more encouraging. Your thoughts!!!

Freddy Brooker

Political Enigma asked:


Anti Illegal Immigration
Pro Choice
Anti Drug Legalization
Pro Death Penalty (in limited circumstances)
Anti Stimulus
Pro Flat Tax
Pro School Voucher
Pro Social Safety Net (with tightened restrictions)
Pro Balanced Budget
Pro Small Government
Anti Lobbyist
Pro Equal Rights
Pro Second Amendment (with some stipulations, ie.. assault weapons ban)
Pro *** Marriage
Pro Limited government involvement personal lives
Pro Reduction of the Deficit/National Debt
zaza,
Your husband is a smart man
Older,
I strongly support the constitution and the principles contained within it. I do NOT support those who buy influence and legislation. I think we just define lobbyist two different ways.
Paige,
Obama is…
Anti voucher
Pro drug legalization,
Pro Stimulus
Anti Flat Tax
Anti Balanced budget
Anti Smaller government
Etc….

Need I go on?

Jeffie Hibberd

Jessica asked:


Acc 230 Lucent Technologies Case?
The following is an excerpt from Lucent
Technologies’ Management’s Discussion and
Analysis of Financial Condition and Results
of Operations:
Executive Summary
We design and deliver the systems, software
and services that drive next-generation communications
networks. Backed by Bell Labs
research and development, we use our
strengths in mobility, optical, access, data and
voice networking technologies, as well as
services, to create new revenue-generating
opportunities for our customers, while
enabling them to quickly deploy and better
manage their networks. Our customer base
includes communications service providers,
governments and enterprises worldwide.
We have three segments organized
around the products and services we sell.
The reportable segments are Integrated Network
Solutions (“INS”), Mobility Solutions
(“Mobility”) and Lucent Worldwide Services
(“Services”). INS provides a broad range
of software and wireline equipment related
to voice networking (primarily consisting
of switching products, which we sometimes
refer to as convergence solutions, and voice
messaging products), data and network
management (primarily consisting of access
and related data networking equipment
and operating support software) and optical
networking. Mobility provides software and
wireless equipment to support radio access
and core networks. Services provides deployment,
maintenance, professional and managed
services in support of both our product
offerings as well as multi-vendor networks.
Beginning in fiscal 2001, the global
telecommunications market deteriorated,
resulting from a decrease in the competitive
local exchange carrier market and a significant
reduction in capital spending by established
service providers.This trend intensified
during fiscal 2002 and continued into fiscal
2003. Reasons for the market deterioration
included general economic slowdown, network
overcapacity, customer bankruptcies,
network build-out delays and limited availability
of capital.
We believe that the market for telecommunications
equipment has stabilized
and is starting to grow in certain areas. The
growing demands of enterprises and consumers
for additional services tailored to
their needs is creating the need for a new
convergence of networks, technologies and
applications.

1. Using the Consolidated Balance
Sheets for Lucent Technologies for
September 30, 2004 and 2003, prepare
a common-size balance sheet.
2. Evaluate the asset, debt, and equity
structure of Lucent Technologies, as
well as trends and changes found on
the common-size balance sheet.
3. What concerns would investors and
creditors have based on only this
information?
4. What additional financial and nonfinancial
information would investors
and creditors need to make investing
and lending decisions for Lucent
Technologies?
compose a 500-750-word paper in
APA format that includes your answers to questions 2-4

LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in Millions, Except per Share Amounts)
September 30, September 30,
2004 2003
Assets
Cash and cash equivalents $ 3,379 $ 3,821
Marketable securities 858 686
Receivables 1,359 1,511
Inventories 822 632
Other current assets 1,813 1,213
Total current assets 8,231 7,863
Marketable securities 636 —
Property, plant, and equipment, net 1,376 1,593
Prepaid pension costs 5,358 4,659
Goodwill and other acquired intangibles, net 434 188
Other assets 928 1,608
Total assets $ 16,963 $ 15,911
Liabilities
Accounts payable $ 872 $ 1,072
Payroll and benefit-related liabilities 1,232 1,080
Debt maturing within one year 1 389
Other current liabilities 2,361 2,393
Total current liabilities 4,466 4,934
Postretirement and postemployment benefit liabilities 4,881 4,669
Pension liabilities 1,874 2,494
Long-term debt 4,837 4,439
Liability to subsidiary trust issuing preferred securities 1,152 1,152
Other liabilities 1,132 1,594
Total liabilities 18,342 19,282
Commitments and contingencies
8.00% redeemable convertible preferred stock — 868
Shareowners’ Deficit
Preferred stock—par value $1.00 per share; authorized shares:
250; issued and outstanding: none — —
Common stock—par value $.01 per share;Authorized shares:
10,000; 4,396 issued and 4,395 outstanding shares as of
September 30, 2004,and 4,170 issued and 4,169
outstanding shares as of September 30, 2003 44 42
Additional paid-in capital 23,005 22,252
Accumulated deficit (20,793) (22,795)
Accumulated other comprehensive loss (3,635) (3,738)
Total shareowners’ deficit (1,379) (4,239)
Total liabilities, redeemable convertible preferred stock
and shareowners’ deficit $ 16,963 $ 15,911
See notes to consolidated financial statements.

Y

WE asked:


I lost my job 8/15/2008 due to reduction in force. I was there for 10 years, made a good salary, but never saved. I had very little credit card debt, but had about 20 credit cards with zero balances. For the last year, I have spent 14-16 hours a day on the phone, going to job fairs, networking, calling people with no luck. I applied for over 1,200 jobs. Last week, I finally found a job making 80% less than my last job. I lived off of all of those credit cards for the last year, and used one to make the payments on another. Now, all 20 cards are maxed out. I am caught up on 15 of the accounts, but the other 5 are calling me every 30 minutes to 1 hour with an automated dialer.

I did this to myself by not saving, and have learned a difficult lesson. The 5 banks will not accept anything less than the exact amount which is late, $2,500.00, $3,500.00, $1,000.00, $1,800.00, and $1,200.00, and there is no way that I can make those kind of payments. I explained the situation to them and they did not understand and keep calling me. Five of the banks offered me a payment which allows me to make really small payments for the next 2 months until I am caught up. I am grateful to them for that. What can I do about the other 5 banks? Before I lost my job I had superior credit, now I am thinking about bankruptcy to get the 5 banks off of my back. Is there any other way?

Thank you for your help from someone who has never had credit problems.

Matt Bockenstedt