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

??? ? asked:


My home value is sharply down, the equity used to be 60% three years ago, now it’s barely 35%.

My 401(k) is up on paper, but taking into account plunging exchange rate of US dollar, it’s actually 40% down. But because it’s up on paper I would still have to pay deferred income tax, despite reduction in real value.

My social security pension is part of $7 trillion government debt, obviously never to be recovered.

How am I going to retire?

Jackson Diza

Mark K asked:


I am considering using a dept reduction company to reduce the principal of my credit cards. They claim that the credit card companies fair out well by negotiating lower low balances and getting those balances paid off right away. I know this hurts ones credit but after a few years and having a better debt to income ratio that my credit will improve.
Has anyone used such companies and what were your results.

Long Gauani

elv1s1sal1ve asked:


My wife and I have separate credit card debt as well as auto loans. We share the $900 rent and utilities. She brings home about $3500/mo and I about $3000/mo. I owe about $5000 on a refinanced auto loan that costs me $178/mo. My auto ins is $100/mo. I have $10,400 in credit card debt over 6 cards that I manage easily by paying more than the minimum monthly. I have a plan to pay off at least 75% of that cc debt by the end of the year because I would like to begin the mortgage qualification process in 2009.

My wife has about $50,000 in credit card debt over 10 cards. Three of those are severely delinquent. She has been playing the interest rate reduction game with the cc companies for some time now, but she also has other financial obligations due to a DWI conviction last year + a $700 car pmt +$125/mo insurance bill.

Should she cut her losses, file for bankruptcy and will this allow her more take home cash for savings? How does this work under our circumstances? Thanks.
We live in TX. That’s part of my question…I’m not sure if and how it will affect my credit. I am thinking it will affect my attempts to qualify for future credit, especially a mortgage, but I just don’t know.

Shirley Flagg

Jaker asked:


I’ve had a reduction in pay and unable to pay minimum payment (high debt). I have worked with the co and reviewed a budget that is satisfactory; however they are asking me to tell them what my home is worth. I’m uncomfortable with this.

Scott Emperor

sixplace asked:


a. reduction of the national debt
b. control of stock prices by the Federal Government
c. joint effort of business and labor to strengthen the Presidency
d. assumption by the Federal Government of greater responsibility for the nation’s well-being

Warren Sud

NascarKY89 asked:


what do you think?
Economy
We are a capitalist country. That means the markets are determined by supply, demand and competition. I believe the 700 billion, tax payer dollar bailout was out of government bounds. The governments’ responsibility includes patients, tariffs, quotas, minor wall-street and banking regulations, opening trade agreements with other countries and other small policies. I don’t not believe that the interest rate should be set by, as I’ve heard once, “a few powerful men in a marble palace in solitude.” The market should be set my consumer-business negotiations. It will be rough for a couple of months but when it does get settled out it is a much more sound, stable and predictable market. If a bank charges to high of a rate, the consumer goes elsewhere for a loan. That forces the bank to lower. The same rule applies to prices. If gas is too high, boycott it. In a week gas would be back to $1.50. If gas starts back up, repeat until it settles out. I am not an economist the simplicity of this ideas boggles people’s minds so much hey they can’t understand it. Will there be hard times, yes. Is it better, I think so. (my bad, America is to spoiled to go a week without gas.i do it all the time. *cough* city bus *cough*)
Deficit Reduction
The national debt is tremendous. Ridiculously huge. Easy fix though. Cut government spending. Oh, my god! It’s too simple! Duh! If you own a business and you gross $100. You expenses is $150, and you debt is $700. First, stop barrowing, then cut you expenses to $60 (aka budget cut). Use the $30 to pay off the debt and $10 to improve your business. I can’t tell you all of the different government programs there are. But I’m willing to bet 45% if the federal budget is useless crap. The war will have to end and someone will have to go down the list of government programs with a sharpie. A lot of government jobs will be lost, yes. But by how crappy all the other, more important programs are running, I think they could use an extra hand.

Derrick Gustovich

pdooma asked:


Are we the taxpayers being swindled?

http://thomas.loc.gov/cgi-bin/query/z?c111:H.R.3068:

‘The original TARP legislation required that money made from the program “shall be paid into the general fund of the Treasury for reduction of the public debt.”

Frank, however, wants to spend the money before it can be used to pay down anything. First, the “TARP for Main Street” proposal would take $1 billion “from dividends paid by financial institutions that have received financial assistance provided under…the Emergency Economic Stabilization Act” and apply it to a trust fund that Frank has long wanted to create for low-income rental housing. (The measure, unfunded, was part of last year’s bailout of Fannie Mae and Freddie Mac.) Next, Frank would take $1.5 billion from TARP dividends for a so-called “neighborhood stabilization” fund. Republican critics have charged that both measures might allow federal dollars to be distributed to activist groups like the Association of Community Organizers for Reform Now, or ACORN.

The “TARP for Main Street” bill would also spend $2 billion, apparently from remaining TARP funds, to subsidize people who are delinquent on their mortgages, and another $2 billion to “stabilize multifamily properties that are in default or foreclosure.”‘

Can he really do this? Do you support this? Why or why not?

http://www.washingtonexaminer.com/opinion/blogs/beltway-confidential/Barney-Frank–49649362.html

Christen

Warren T asked:


Our national debt has gotten so large that it is unmanageable but the only way it can be brought under control is with massive reductions in government spending and that will never happen.

Rodney Pettipas

V-Starion asked:


We charge $5 to all voters prior to allowing them to cast their ballots in any presidential primary election.
25% goes to Federal Gov’t for the sole purpose of paying down the national debt.
25% Goes to the State Gov’t for use as they deem fit (as decided by state legislators)
25% Goes to fund local public schools (local school board decides how to spend the cash)
25% Goes to Election costs.

That way only those that really give a damn will turn out for the election and those don’t can stay at home and watch the results unfold on their TV sets from the comfort of their coushy couch. They can blame the rich elitist for the way things turn out. They do that already. So what’s the difference.

Drastic income tax reductions would surely follow

Doyle Bruegman

Free at last asked:


To fast forward one year and Obama’s 10 Trillion has paid for all kinds of public work programs (just like they did in Japan) and we still have 15% unemployment (like in my state) and it doesn’t work (like it didn’t in Japan) what are we going to do?

We will be 20 Trllion in debt with an estimated 30% reduction in tax revenues, 15%-40% unemployment and massive tax increases for everyone to pay for a plan that failed HUGE!

what then?

Herb Brasfield