Europe’s Financial Crisis Leads to Suicide Surge
The harsh spending cuts introduced by European governments to tackle their crippling debt problems have not only pitched the region into recession — they are also being partly blamed for outbreaks of diseases not normally seen in Europe and a spike in suicides according to the AP.
The report goes on to say that the “worsening health was driven not just by unemployment, but by the lack of a social welfare system to fall back on. People need to have hope that the government will help them through this difficult time”.
I think that it is “nice” to have public assistance programs available for the truly needy. There is however something inherently wrong with these social programs. I believe these programs promote government dependency.
A growing dependency of government is what got us into so many of our problems, and what is our own government doing? They are promoting that very dependency. Instead of raising people up, we are keeping them down. We are creating a generational dependency on social programs.
According to the 2012 Index of Dependence on Government more people than ever before—67.3 million Americans, from college students to retirees to welfare beneficiaries—depend on the federal government for housing, food, income, student aid, or other assistance.
Once considered to be the responsibility of individuals, families, neighborhoods, churches, and other civil society institutions, Americans are looking to the government to take care of them.
The ethic of self-reliance joined with a promise to the brotherly care of those in need appears threatened, well nearly absent in today’s society. There was a time, before all of the social programs, when people took care of each other. If you were having trouble the first thing you did was —anything you could — to get back on your feet.
There was no sitting around waiting for the government to come to the rescue. Your church, or family or friends helped out, and you helped others when they were in need. We took care of ourselves without a dependency on the government.
Our social programs including Social Security, Medicare and Medicaid are unsustainable in their current form.
Over the next 25 years, more than 77 million baby boomers will begin collecting Social Security checks, drawing Medicare benefits, and relying on long-term care under Medicaid. There will be no event so financially challenging to these programs over the next two decades than this shift of boomers into retirement.
More than 70% of Federal spending goes to dependency programs.
With so many Americans on or soon to be on the government dole and nearly half of all Americans not paying income taxes, there is no way we can pay for all of this and our spending will spiral out of control (it’s almost there now). With an increase in recipients and a decrease in the number of workers left paying for these programs, we will soon reach our fiscal tipping point much as other countries have already, and this will put us in a certain domestic debt crisis of our own.
In doing research for this article I have found no evidence that Americans are suffering a rise in medical ailments and suicides. But we have not quite reached the same crippling financial problems as our friends across the pond.
…but trust me when I tell you, it’s coming.
Careful Consolidation can Resolve your Debt Woes
Yahoo News — If you have racked up a lot of debt on credit cards, loans and overdrafts, then you may need a quick-fix solution.
If you are scared to death to look at your checkbook balance, you avoid opening bills, you are late on making payments to creditors and you never answer the phone at home, you might consider debt consolidation.
Essentially, debt consolidation combines all of your debts into one loan so you only have to make one payment. This idea might sound appealing, but it has its disadvantages as well as advantages. To determine if debt consolidation makes sense for you, take a look at these facts.
There are a few ways that exist to get funding to consolidate, and pay off, your debts. One of them involves working with a debt consolidation firm. It is true that you can consolidate your debts on your own, too, and pay off debt but it sounds easier than it is. It is best to let a professional like DebtHelper.com, who has experience and knows the ins and outs of the industry, handle your debt management.
Some people look to refinancing or borrowing against their homes as a route toward debt consolidation. Refinancing your home and taking cash out can help pay down high-interest debt, and can be tax-deductible, but carries risk. What I don’t like about refinancing to pay off debt is that you have now financed your debt for usually 30 years. Don’t you think you could come up with another alternative to paying off high interest debt? Again, if you find yourself in this situation, seek the advice of a professional that helps get people out of debt. A loan officer who sells refinances is likely not your best resource for honest advice on curing your debt problem.
If you do end up refinancing your home make sure that there is no possibility of missing a payment. The last thing you want is to face foreclosure because you transferred too much unsecured debt to secured debt. (Unsecured debt is not supported by any type of collateral or asset, and it includes debt from medical expenses, credit cards and utility bills.)
With a home equity loan or line of credit, you borrow against your home’s equity.
With a home equity loan or line of credit, you will borrow against the equity in your home in order to pay off those bills. However, you of course have to put up your house as collateral. This is essentially a second mortgage on your home. This means, just like a normal refi, you could lose your home if you are unable to make the payments. Plus, if your home’s value drops, you will likely be upside-down and you may not be able to pay back all the money you owe if you sell your home.
Some people like to find a low interest rate credit card with a credit limit large enough to cover all of their other debt and use that to pay stuff off. This is a wreck waiting to happen. Chances are that if you got yourself in trouble with your other credit cards, something will come up and you will use this new, larger limit card, and increase your debt even more.
You must at all costs, avoid adding to the mountain of debt.
Debt consolidation can make things easier for some people by helping to make payments on-time. But it does not address issues like overspending and poor budgeting – issues that, for a lot of people is what created the original debt problem. If you choose debt consolidation, you must also educate yourself and change your way of managing your money and dealing with debt.
If you are currently past due or overwhelmed with your debt situation, seek the advice of a professional.
The professionals at DebtHelper.com can explain the benefits of a debt management program and provide you with a fresh start.
One of the biggest long-term benefit of the debt management plan is the reduction in interest. Reduced interest allows you to pay off your principal balances faster while saving you possibly thousands of dollars in finance charges.
In order to determine if you are eligible for a debt management program, you can fill out an online budget application form now and then you can contact one of their Certified Personal Finance Counselors© at (800) 920-2262.
DebtHelper.com can currently accept clients from the states listed here. DebtHelper.com is licensed, insured and complies with all state licensing requirements to ensure mandated regulations are followed. They are diligently working on becoming licensed in every state and are opening new states monthly.
Please call (800) 920-2262 if you have any questions. DebtHelper.com’s consultations are free, call them any time.
House Democrats want to repeal debt ceiling
Can I get rid of my debt ceiling too?
The AP reports that House Democrats are pushing legislation in an attempt to rescind the debt ceiling for the federal government. They contend that the borrowing limit has no real-world purpose and has become a tool used only for political maneuvering and that it can have a devastating economic effect.
What! Are you kidding me? Just do away with a limit on debt? I want to do it! I wonder if I sent a letter to MasterCard and told them that I will no longer have a limit on much debt I will run up on my card, if they would have a problem with that. After all, having a limit on my MasterCard has a devastating effect on my personal economics.
It gets better, an excerpt of a letter from Harry Reid and other Democrats to the White House suggests to President Obama that if House Republicans refuse to raise the debt ceiling to pay the nation’s bills, Obama should circumvent Congress and raise the ceiling himself, adding to his history of skirting Congress.
Obama insists he won’t negotiate with Republicans because the US is obligated to pay its bills.
The government doesn’t have the money to pay their bills; the national deficit is over $16 trillion as it is. So if you are the government and you don’t have the money to pay your bills, what do you do? Easy, you borrow it from China.
Ok, so if I use the government as my personal finance model, my mentor if you will, I can borrow money (from wherever I can), spend that money like crazy, a lot of it on ridiculous things that have no positive impact on my life or returns any monetary benefit, then promise to make payments for all of the money I have borrowed. I’ll even give a bunch of money to my friends and even to non-friends. I’ll do all of this without a spending or debt limit. Oh yeah, I’m not going to do a budget either.
How do you figure that would work out? I figure I would be straddled with so much debt I would never be able to pay it off in my lifetime (Much like the government has done). What I would have to do is create a debt plan than would get rid of my debt in a reasonable amount of time and not leave me eating Ramen Noodles until I retire. …Something the government can’t seem to figure out.
Just like there are many things in the government that can be cut to curtail spending, my and your spending could use a tune-up to get on the road to being debt free. Without going into great detail, the following are a few things to do to get your finances back in order.
Compare your income to your expenses. This is simple but can be scary for many in the end. Write down your monthly income; now deduct all of your monthly expenses. All of them, eating out, coffee at Starbucks, cigarettes, that everyday Snickers bar, fast-food, you get it, everything. Is there money left? For a lot of us there isn’t.
Take control right now. Take control of your spending immediately, especially if there is no money left after your math exercise. There are things that you can do right now, without any help from anyone, and that is stop your spending on those little things that add up quickly. McDonalds, Starbucks, weekly movie, impulse buys at the gas station, all of this stuff you can stop. You will be surprised to see just how much money you can save.
Budget for the future. The future is your goal. To be debt free or almost there is a feeling so few people these days gets to experience it’s a shame. …Plan ahead for your financial future.
Seek the advice of a financial planner or personal debt professional and don’t be like the government, have a budget, have a debt ceiling and spending limits. Plan for your financial future and be financially responsible.
Debt after Death . . . Who Pays?
After a relative dies, the last thing grieving family members want are calls from debt collectors asking them to pay a loved one’s debts. As a rule, those debts are paid from the deceased person’s estate.
According to the Federal Trade Commission (FTC), the nation’s consumer protection agency, family members typically are not obligated to pay the debts of a deceased relative from their own assets.
What’s more, family members – and all consumers – are protected by the federal Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to try to collect a debt.
Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.
Does a debt go away when the debtor dies?
No. The estate of the deceased person owes the debt. If there isn’t enough money in the estate to cover the debt, it typically goes unpaid. But there are exceptions to this rule.
You may be responsible for the debt if you:
• co-signed the obligation;
• live in a community property state, such as California;
• are the deceased person’s spouse and state law requires you to pay a particular type of debt, like some health care expenses; or
• were legally responsible for resolving the estate and didn’t comply with certain state probate laws.
If you have questions about whether you are legally obligated to pay a deceased person’s debts from your own assets, talk to a lawyer.
Who has the authority to pay the deceased person’s debt out of his or her assets?
The person named in a will who is responsible for settling a deceased person’s affairs is called the executor.
If there is no will, the court may appoint an administrator, personal representative, or universal successor, and give them the authority to settle the affairs. In some states, others (or other people) may have that authority, even if they haven’t been formally appointed by the court.
Whom may a debt collector talk to about a deceased person’s debt?
Under the FDCPA, collectors can contact and discuss the deceased person’s debts with that person’s spouse, parent(s) (if the deceased was a minor child), guardian, executor, or administrator.
Also, the FTC permits collectors to contact any other person authorized to pay debts with assets from the deceased person’s estate. Debt collectors may not discuss the debts of deceased persons with anyone else.
If a debt collector contacts a deceased person’s relative, what can they talk about? Collectors are allowed to contact third parties (such as a relative) to get the name, address, and telephone number of the deceased person’s spouse, executor, administrator, or other person authorized to pay the deceased’s debts. Collectors usually are permitted to contact such third parties only once to get this information.
The main exception is if a collector reasonably believes that the information provided initially was inaccurate or incomplete, and that the third party now has more accurate or complete information. But, collectors cannot say anything about the debt to the third party.
Even if I am authorized to pay a deceased person’s debt, can I stop a debt collector from contacting me about the debt?
Yes. To exercise this right, you must send a letter to the collector stating that you do not want the collector to contact you again. A telephone call is not enough.
Make a copy of your letter for your files, send the original by certified mail, and pay for a “return receipt” so you can document what the collector received and when.
Once the collector gets your letter, he cannot contact you again except to confirm that there will be no further contact or that he or the creditor plans to take a specific action, like filing a lawsuit to collect the debt. Keep in mind that even if you stop collectors from communicating with you, you are still responsible for the debt.
For Complaints and More Information
Report any problems you have with a debt collector to your state Attorney General’s office at naag.org and the Federal Trade Commission at ftccomplaintassistant.gov.
Many states have their own debt collection laws that are different from the federal FDCPA.
Your Attorney General’s office can help you determine your rights under your state’s law.
For more information about debt collection and additional rights provided under the FDCPA, see Debt Collection FAQs: A Guide for Consumers and visit ftc.gov/MoneyMatters, which offer shortpractical tips, videos, and links to reliable sources on topics like credit repair, debt collection,job-hunting and job scams, vehicle repossession, managing mortgage payments and foreclosurerescue scams.
The FTC works to prevent fraudulent, deceptive and unfair business practices in the marketplace and to provide information to help consumers spot, stop and avoid them. To file a complaint or get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261.
Watch a video, How to File a Complaint, at ftc.gov/video to learn more. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.
I’m Done With My Debt!
In 2006, Roger Simpson was drowning in debt. He owed thousands of dollars to credit card companies with no visible way out. Then, one fateful day, he was at a community event and happened to stop by the Debthlelper.com outreach booth. He found the counselors to be friendly and helpful, and after the event, he decided to follow up with a visit to the Debthelper office.
“I decided that it wouldn’t hurt to see what it was all about,” indicated Mr. Simpson. Because the Debthelper.com process includes analyzing each client’s situation, including dissecting monthly income and expenses, he got a clear picture as to where he stood with his debt and what it would take to resolve it.
“My first impression was that the counselors were very helpful and very friendly,” stated Mr. Simpson. “It was not hard to make the decision to join the program, because everything was made so clear to me,” he added.
It wasn’t always an easy process for Mr. Simpson, however he said that he never doubted he would complete the program. “I always looked forward to the day I would be out of debt,” he said.
“There were some times I was late with a payment, but the counselors at Debthelper.com were always there to assist me,” said Mr. Simpson, who also stated that, “I never got any nasty letters or calls from Debthelper.com if I was late, just friendly assistance from the staff. They made everything so easy.”
With the assistance of the Debthelper.com counselors Mr. Simpson also created a monthly budget and has utilized it for nearly the entire time he has spent in the debt management program.
“I would suggest a monthly budget for everyone,” says Mr. Simpson, “It really helps to keep your spending in perspective and helps you to save.”
He suggests that consumers who are facing a similar situation to the one he faced “Do not stay in neutral! Join the Debthelper.com program.” “I highly recommend it!” Mr. Simpson said.
Mr. Simpson indicated that he has received a number of offers for new credit cards, but has no intention of “ever getting into this position again.”
Mr. Simpson also suggests that you take advantage of all the free financial life skills programs offered by Debthelper.com.
“If I had known about them sooner, I would not have waited so long to start,” said Mr. Simpson.
When asked how it feels to be debt free? Mr. Simpson exclaimed: “It feels great! Sometimes I never thought this day would come and it has.”
In addition to a Debt Management Program and the free Financial Life Skills Seminars, counseling for Bankruptcy, Reverse Mortgages and Loan Modifications.
Credit Card Management Services, Inc.
4611 Okeechobee Blvd., #114
West Palm Beach, FL 33417
P: 800-920-2262
E: clientservice@debthelper.com
How Your New Year’s Resolution can become Your Holiday Bonus
With the start of the New Year comes the popular tradition of making New Year’s Resolutions. Popular resolutions include eating healthier and getting more exercise, but how about financially related ones?
Last semester I would go to the bagel shop on campus and get a smoothie or bagel, sometimes both. And while I was waiting for my order, I would make excuses for myself as to why it was ok that I was spending money I knew could have gone to better use. I didn’t realize how much I was spending on those seemingly simple “treats” for myself until I looked over my portfolio while do my online banking.
It turns out that in one month’s time period I had spent just over 18 percent of my money on dining out. I thought to myself that this information couldn’t be true, but while going through my bank statements I added it all up and I was spending an extra five to ten dollars per week on a simple bagel and smoothie!
So one of my top priority New Year’s Resolution is to diligently watch my finances, and not for a week or month, but to really stick with it all year long. If I avoid the bagel shop, at the end of the year I could have an extra $520 in my pocket to use towards groceries, school expenses or just to put towards building my savings account.
I feel that as consumers, we automatically think that when we get some extra money in our pockets that we need to go out and spend it immediately.
It’s not that treating ourselves is necessarily a bad thing; however, we need to bring back the concept of paying ourselves first. Instead of taking a trip to the bagel shop, maybe sit down and look over your savings account first. Is the amount really where you want it to be? And don’t forget to include your spouse in these evaluations as well.
In the end, keeping track of your bank summaries and seeing what can be cut out over the months could just end up being a winter bonus from yourself at the end of the year.
For more money saving solutions, check out Debthelper.com or call one of our certified credit counselors. Their help is at no charge to you. 1-800-920-2262.
5 Ways to Cope with Debt Stress
Don’t ignore the problem
It won’t go away and the longer you leave it, the worse it gets. Get in touch with your creditors straight away and explain your difficulties. Explain your hardship situation in writing and back it up with a detailed personal budget.
Outlining your income and outgoings and showing your creditors how much you can afford to pay them every month. Contact everyone you owe money to. If you make arrangements to pay some creditors but not others, you could run into difficulties again.
If the first person you deal with is unhelpful, ask to speak to someone more senior who may be able to agree to your offer of payment.
Be wary of borrowing more money
Don’t borrow money to pay off your debts without thinking carefully. Get advice first. You should be particularly wary of taking out a loan secured on your house to consolidate the debts you already have.
If you turn unsecured loans into a mortgage you could lose your house if you don’t keep up the payments.
Consolidation loans mean borrowing more money, over a longer period and will mean more interest to pay. This could make your situation worse in the long run.
Adopt a wise strategy
Make sure you tackle your priority debts first. Priority debts are those that could lead to you losing your home, being evicted, having your gas or electricity cut off, or lead to fines.
This means you should make sure you have made arrangements to pay your essential household bills such as your mortgage or rent, loans secured on your home, tax and utilities before making offers to pay unsecured credit debts.
Your debt situation may get a lot worse if you miss payments on your mortgage to keep up to date with a credit card.
Maximize your income
Make sure you are claiming all the benefits you are able to: Could you claim Tax Credits? Are you sick or have a disability? You may be eligible for income. If you have lost your job, or are off work because of illness, check whether your payments were covered by payment protection insurance.
Contact the credit company if you are not sure. Make sure all adults in your household are contributing to the household bills. You may also be able to save money by switching to better deals on a range of goods and services.
Contact Us
Look into a debt management plan which saves you money on interest and reduces your monthly payments on credit cards.
CHECKING YOUR BENEFITS
Everyone:
http://www.govbenefits.gov/
Senior specific:
http://www.benefitscheckup.org/
Contact Debthelper.com at 1-800-920-2262 for more debt help.
http://www.debthelper.com/
We enable anybody with an unsecured debt problem to manage and control it themselves. Simple. Act now!
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