Idiotic Or Sane? Should Student Loans Be Forgiven By The Government?

After researching one of the current movements, Government Forgiveness of Student Loans, I have decided to write about arguments in favor of and against this interesting topic.  The proposed bill H.RES.365 would provide student loan debt forgiveness as one more road to an economic stimulus. This new bill is being lead by U.S. Congressman, Hansen Clarke (D-MI).

H.RES.365
Latest Title: Expressing the sense of the House of Representatives that Congress should cut the United States' true debt burden by reducing home mortgage balances, forgiving student loans, and bringing down overall personal debt. 


The idea behind the bill is that by cutting the student loan debt, more jobs would be created and more financial security would be provided. As per the Congressman, American families are overburdened with student debt.

H.RES.365 makes sense in various ways. Politicians have been able to bail out the big banks and corporations, now it is the American public who needs a turn. The government can easily extend a helping hand to the graduates of our universities and colleges. After all, these young people are in fact going to be the leaders of tomorrow.

Like everything else the pros and cons are strong. Do you agree or disagree with Student Loan Debt Forgiveness?

Here are some compelling arguments against this bill. For example:

An article in the Freakonomics website written by Justin Wolfers, who says, "that this plan does not make economic sense." Actually, he's more direct than that, writing, "it is the worst idea ever" and emphasizing, "I bet that the proponents can't find a single economist to support this idiotic idea."

Wolfers gives several reasons for why forgiving student loan debt is "idiotic" and would do little to stimulate the economy. Wolfers points out that if you want to simulate the economy, "you get more bang-for-your-buck if you give extra dollars to folks who are most likely to spend each dollar and that would be dropouts." If college graduates get their hands on the money, "Much of it would go into the bank. No spending there. Wolfers also argues that college graduates typically have high incomes, so why should the government eliminate their debt and not the debt of the high school dropouts, who are more in need of the money.

Student Loan Debt Forgiveness. What is your view on this controversial subject? 


It will never be settled but a decision will come about at election time. This author personally had to pay back student loans for herself and for her daughter, but it was done, accomplished, payed off.  It was difficult for me because I was facing a lot of debt at the time, but as I stated, it was done!

"Did you ever think that making a speech on economics is like pissing down your leg? It seems hot to you but not to anyone else." -Lyndon B. Johnson, 36th President of the United States

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Advice For Appying For A Quick Payday Loan

Let's talk about requesting a payday loan and exactly what you should expect.

Many times in our lives emergency situations come up and we may not have the cash on hand to handle the emergency and other complications.  In emergency situations fast cash may be necessary for various reasons. If obtaining a loan from a family member or friend is not an option, then obtaining ready cash may have to be solved by borrowing from a payday lender. This may not be the most favorable way to obtain cash, but in emergency situations, it could be the only and most efficient way to obtain money when needed.

If you look around, payday loan offices are readily easy to locate. It is definately a sign of the times seeing how many check cashing offices and other types of financial institutions are also offering fast cash loans. Not only physical institutions are offering the service, but a quick search on the internet will reveal many many lenders offering fast payday loans.

These emergency loans are offered to help a person solve an immediate problem with the promise to pay on their next payday. One of the main points that facilitates a quick loan is that a credit check is not required. It does not matter if you have bad credit or good credit, either way you can still obtain a fast payday loan. In the event you have bad credit, the amount that you can borrow can not exceed the salary you will be receiving on your next payroll check.

There are various ways you can apply for a loan. You can either go directly to an office offering the service or you can apply online. You can search for payday loans and you will find many opportunities. It would be wise to review several sites before you decide to apply online. There are different terms and conditions that you should be aware of and of course pick whichever is more beneficial to you as a consumer. But keep in mind to pay the loan as soon as you can, otherwise the interest will keep piling up and you will be paying significantly more than the amount that was originally owed.

The Federal Truth in Lending Act treats payday loans like other types of loans. The lender must disclose the cost of the loan. Payday lenders must give the consumer the finance charge (a dollar amount) and the annual percentage rate (APR — the cost for the credit per year) in writing before you sign for the loan. The APR is based on several things, including the amount you borrow, the interest rate and credit costs you're being charged, and the length of your loan.

There are a lot of direct payday loan lenders offering same day loans online. By researching what each has to offer, you will be able to choose which one gives the best terms that will help you get on the right track until the next payday arrives.

These are general questions that will be asked on an application for a fast payday loan:

• Does the applicant have a fixed monthly income?
• Is the applicant employed by a dependable company? 
• Has the applicant been employed with the same company for at least 6 months? 
• Does the applicant have an active bank account? Is the applicant over 18 years of age?

An application for a payday loan is usually approved or denied very quickly once information is varified. The application will be submitted to various lenders and may receive approval from more than one lender. This will give the applicant the opportunity to pick the lender with the most favorable terms and conditions.

Once all documentation is signed, the money being borrowed should be deposited within a day to the borrowers bank account.

"When a person has no need to borrow they find multitudes willing to lend." -Oliver Goldsmith

Marilu Nieto, The Home Biz Diva, is an experienced Real Estate Broker having helped countless families in the span of 24 years of service. If you would like more information regarding debt relief and debt relief services, visit my informative site at CONSUMER DEBT RELIEF BLOG 
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When Is It Advisable To Take Out a Payday Loan?

Let's talk about a payday loan.  Payday loans are also known as cash advance loans. First of all a cash advance loan is advisable only in emergency situations because they can be quite troublesome at a later date when repayment is required. It is advisable to look for other alternatives first rather than applying for a payday loan. The cost is quite high. Determine the extent of the emergency, (which sounds a bit ridiculous) and determine whether the cost is worth it. 

There are many situations that may warrant a payday loan. Let me give you some examples, and then you determine.

First and foremost would be health related. There are many people that do not have health insurance, and can not pay for medical care. Many situations can arise such as an accident, sudden illness, a person is hurt, etc. Life is important. Everything must be done to preserve it. If someone needs medical attention and you can not pay then of course, a payday loan would be advisable.

Another emergency may be travel. Hypathetically let's imagine a family member passes away in another part of the country, where it is necessary to get there as soon as possible, but unfortunately it is not in the budget for 1 or 2 or more airplane tickets. In this case a payday loan is most advisable. With the same thought let's say that you and the family are traveling by car somewhere and the car breaks down requiring an extensive and expensive repair. Once again an amount that is beyond your means. This would be another case where one could employ a this type of loan.

Emergency home repairs. There are cases where roofs are in extremely poor condition, requiring repair or replacement to keep cold weather out, rain and snow. The furnace went out and you need it because of cold weather, your refrigerator or stove go out. Something in your home that really needs repair or replacement, because of a need at that moment or because it could cause long term damage. These are emergencies that have to be taken care of and if there is no money available, then it would be wise to obtain an emergency loan.

Emergency car repairs. It is necessary to travel to and from work, do the family grocery shopping, or visit someone. A car is a great asset but not when it does not work. Emergency car repair is another good reason to possibly request a quick loan.

Finally, what is considered by this author an emergency qualified for use of a payday loan, are utility bills. If your gas and electric are turned off because of non payment, or your water, or a mortgage payment is not met, these also qualify as emergencies. Credit cards, personal loans, revolving credit, etc do not. Those are luxuries being paid for through credit.

The costs associated with fast cash advance loans are governed by lender terms, the amount of money borrowed, and the processing fees necessary to complete the transaction. Cash advance loans are as a rule do have a high cost. For example a $200 loan, you can expect to pay a minimum service charge of $30 due within one or two weeks of the loan. When you take out a loan, you'll have to provide a check or money order in the amount of the cash advanced plus the service fee -- cashable at the end of the term of the loan.

This is just one example. There are variations that you should examine before signing on the dotted line.
There are valid reasons to request a payday cash advance loan. The best advise is to make sure that you are requesting the loan for a valid emergency.

"A simple fact that is hard to learn is that the time to save money is when you have some." -Joe Moore


Marilu Nieto, The Home Biz Diva, is an experienced Real Estate Broker having helped countless families in the span of 24 years of service. If you would like more information regarding debt relief and debt relief services, visit my informative site at Consumer Debt Relief 

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Are You Facing A Financial Crisis?

Let's talk about struggling with personal debt and finding yourself and your family in a financial crisis.  Been there, done that. Without a doubt it is an awful situation to face alone and even more so when you have a family to look after.

Here are some tips that may help if your are facing a financial crisis. To survive difficult times as mentioned, it is crucial to keep in mind the two most important points. First, don't panic; second, set your priorities.

A calm thoughtful approach to your family's problems and necessities is a priority in today's tough economic times. Review your monthly income (or average monthly income) and subtract from it your fixed costs of living. Fixed costs are housing, utilities, food, auto or form of transportation, clothing (necessities), insurance, child care/school, etc. DO NOT INCLUDE CREDIT CARDS. Recreation and luxuries are not necessities. Are you making enough to cover fixed costs? Are you living beyond your means? It is at times difficult to assess our situation without seeing real numbers. Once you see reality down on paper in black and white, (or whatever ink you use), reality will begin to set in.

The way a family lives can be changed. In order to help your financial situation, this may be necessary. Perhaps it may be advisable to liquidate some essential items. There could be resistance from family members, but the heads of household will have to be honest and explain to whoever makes up the household, the necessity of organizing and eliminating. Liquidation may include real property or cars to help maintain financial survival for you and you family.

Unsecured bills, family loans, and credit cards may have to be put on hold; anyone you owe money to can be convinced to hold off if approached correctly. In the event that the creditors become hard nosed and refuse to work with you, then it is suggested that you seek seek financial counseling There are many free organizations willing to help and of course there are many pay organizations seeking your business. It would be a wise decision to talk to a professional for analysis of your personal financial situation. Most of all, explore your options. Advice on the latter is to thoroughly review and investigate whomever you choose to do business with. Carefully consider who takes a bite of your next pay check before you hand over your money or try a free analysis.

Remember, don't panic. There is always a solution. The difficult part is looking for that solution and sticking firm and tight to the decision made. It will be extremely difficult at first, but with everyone in the family informed and doing their part to help financially, your finances can be stabilized and begin to improve with time.

"Every problem has a gift for you in its hands." -Richard Bach

Marilu Nieto, The Home Biz Diva, is an experienced Real Estate Broker having helped countless families in the span of 24 years of service. If you would like more information regarding debt relief and debt relief services, visit my informative site at Consumer Debt Relief Info.

I WAS SEARCHING FOR FINANCIAL FREEDOM AND I FOUND IT AT BestMoneyMakingOnlineSite

Before A Divorce, Protect Your Finances

Let's talk about protecting your financial reputation before a divorce.  Most people do not think about their finances before a difficult decision as separation and divorce, but it is absolutely necessary.  Here are the reasons why. While you may not want to think about money when you are experiencing a traumatic life change such as divorce, being practical may save you from even more heartache somewhere down the road. Keeping your credit safe before a separation and divorce is critical. 

The following steps should be taken:

Document Everything — First and foremost document everything. Once attorneys and courts become involved make sure that all of your financial arrangements and agreements are documented. If there are any discrepancies, for example creditors wanting payment on something that your ex spouse owes, you can refer anyone to your official court records. While this may not be an exact science to get a collector off of your back in a timely manner, you will have the law on your side and the means to protect or restore your credit.

Take Note Of All Your Responsibilities — Be aware of all the accounts you are responsible for, including bank accounts, mortgage loans, credit cards and utilities. It does not matter if you and your soon to be exspouse have decided who will take responsibility for what. There has to be documented proof and arrangements made with each creditor that only (1) one name will be on the account.  The person taking responsibility for the account. 

Dissolve All Joint Accounts — It is a must to disolve joint accounts. Rather than trying to split the account and each spouse paying their portion, it is best to sever all ties. You should remove the right person's name from the accounts or cancel them completely. Make sure the both of you do the canceling together, legally. The first place to start is the bank, as most couples share checking and/or savings accounts when they are married. Also, if you are taking possession of one car with both of your names on the debt if there is a loan, have your spouse's name removed. Make sure that your spouse does the same thing with any property they take. In the event you are still paying for any of this property, then you may have to refinance to get the loan down to one name.  Any bills you paid together, such as utilities, should be put in one name. With respect to credit cards, you can try to work with the credit card company and have them transfer half of the balance to two different accounts in anticipation of the divorce. This may not be easy, but it is a must. 

Divide Any and All Shared Cash — In the process of determining debt, assigning debt and canceling credit accounts, you and your spouse will probably be left with some liquid assets. You should, with the assistance of your divorce attorneys, fairly divide the cash before your divorce is complete and you no longer have any contact. This much more sensible rather than quarreling after all is said and done.

Sell the House — A common well intentioned mistake is to give the house to one of the exspouses. This may be due to children being involved.  Whatever the reason, it should not be done. The best thing to do is to sell the house together and divide the profit. After all, no one can predict the future. There are countless cases of divorcees having their credit ruined because their ex made late payments or let the house go into foreclosure all together.  Explaining to creditors that you are now divorced will not make you any less responsible for a mortgage with your name on it.

Many things can come up in the events of a separation and divorce. The best protection against added anguish and dispaire would be to take protective measures with respect to your finances.  Get the added advice of your attorney to deal with the debt that both parties has accumulated during the course of the marriage. 

"There is no neutral ground in the universe, every square inch, every split second, is claimed by God and counter-claimed by Satan"  -C.S Lewis

Marilu Nieto, The Home Biz Diva, is an experienced Real Estate Broker having helped countless families in the span of 24 years of service. If you would like more information regarding debt relief and debt relief services, visit my informative site at Consumer Debt Relief Info

I WAS SEARCHING FOR FINANCIAL FREEDOM AND I FOUND IT AT BestMoneyMakingOnlineSite

"There is no neutral ground in the universe, every square inch, every split second, is claimed by God and counter-claimed by Satan"  -C.S Lewis

How Does Divorce Affect My Credit?

This is an excellent question.  Let's talk about the what can happen with your credit if you have to go through a divorce.  Divorce in an uncomfortable subject but nonetheless, people go through separation and divorce every day.  This is very common in our society.  There are many things in displacement because of the situation, and one of them is certainly your credit.

You should know that even the most amicable divorce can leave you in financial ruin. During your marriage, you probably, merged all of your finances, from your bank accounts, credit accounts, to ownership of your home.  Its most likely that one of the partners took most of the responsibility when it came to paying bills, which left the other person in the dark about what was paid and how much. When you are married and committed, this arrangement is common but when the marriage goes to divorce, these common place arrangements contribute to and become credit problems.

If you are headed for divorce, worrying about your credit score may be the last thing on your mind. However, even during the most difficult times of our lives, the world keeps spinning, life goes on and the fact is, divorce can greatly impact your finances and credit history. If you are seeking or have finalized a divorce, it is time to assess what needs to be done to preserve or restore your financial reputation.
Here is some advice you may consider before and after your separation.

When you get a divorce, it is your marriage that is ending and not your shared financial responsibilities. Even if your spouse is responsible for some or most of the debt without your knowledge during the marriage, you may be held responsible for it after the divorce.
This can be avoided if you take the proper actions and sever all financial ties with your ex spouse.  This is the norm and in most situations the ex spouse will be more than happy to cooperate due to the fact that each wants to get on with their lives.  This is true of the ex spouse, but not the creditors. That is why it absolutely necessary to cut financial ties sooner rather than later.

Remember credit accounts are reported for each individual associated with that account, so if you are listed as a joint owner, cosigner, or authorized user, you must deal with that account before the divorce. That means closing the account completely by paying it off or ensuring that one name is totally removed from the account.

Many divorcing couples are confused by the role of the divorce decree. A divorce decree may specify who is responsible for accounts opened during the marriage, but it doesn’t break the contracts with the lenders. There is still responsibility as long as your name is on the account.
If the spouse responsible under the divorce decree is unable or unwilling to pay and the contract has not been changed by the lender, the late payments still will appear on both credit reports and will have a negative impact on credit scores for both individuals.
The missed payments can occur years after the divorce and still will be reported for all individuals associated with the account. That certainly can be an unpleasant surprise.
In some cases, vindictive behavior during the divorce by one or both spouses can have a very direct, very negative impact.
Sadly, an angry spouse may try to hurt their soon-to-be former wife or husband by making large credit purchases on joint accounts with the intent of punishing the other person with huge debts or wrecking their credit history.  What they usually do not understand is that by doing so they also likely will destroy their own credit history at the same time.

There are many situations that can affect one's credit report.  Best advise would be to keep a constant vigil on your credit.  There are many ways and many programs that are available to monitor your credit.  Especially under a separation situation, it is best to be in full control of your credit.  Problems may still arise but the element of surprise will not be a factor.


"Credit is like a looking-glass, which when once sullied by a breath, may be wiped clear again; but if once cracked can never be repaired." - Sir Walter Scott

Marilu Nieto, The Home Biz Diva, is an experienced Real Estate Broker having helped countless families in the span of 24 years of service. If you would like more information regarding debt relief and debt relief services, visit my informative site at Consumer Debt Relief Info

I WAS SEARCHING FOR FINANCIAL FREEDOM AND I FOUND IT AT BestMoneyMakingOnlineSite

The Credit Repair Organization Act, How Does It Help The Consumer?

Let's talk a bit about consumer protection.  The Credit Repair Organization Act or (CROA) defines how credit repair organizations are allowed to operate.  The Credit Repair Organization Act keeps a vigilant eye on credit repair companies and hears consumer complaints against such companies.

We will use the initials CROA in this blog when we refer to the organization.  The CROA, was enacted to ensure consumers of services of credit repair organizations, or companies are provided with information necessary to make informed decisions regarding the purchase of such services. Also, and most important the CROA's duty is to protect the public from unfair or deceptive advertising and business practices by
credit repair companies and organizations.

The CROA requires the following from companies and organizations claiming to repair credit:

1. There must be a written disclosure stating that the consumer has a right to "sue" the credit  repair company if they violate the CROA.
2. The CROA contains a provision that voids any waiver by the consumer rights provided by the CROA.

It is not illegal to be a credit repair company in every state of the UnIted States except for
Georgia, where it is a misdemeanor.  It is legal in every other state to be a credit repair company
as long as it compllies with the rules of the CROA.

Here are 2 rules you should watch for:

1.   The credit repair company can not bill you in advance for services not yet performed.

2.   The credit repair company must disclose to you the consumer in writing that you can
     challenge damaging information on your credit report for free.

Know what credit repair companies can and can not do for you. Do not become a victim of a scam or a fraud.

The advertising offered by these companies sounds great, but know this, accurate information both negative and positive can not be removed from your credit report by using credit repair fraud.  Negative credit stays
on your report for upto 7 years.  Bankruptcies stay upto 10 years.

The Credit Repair Organization Act came into existance because of complaints from so many consumers
that had been victims of repair scams and fraud.

There are companies out there that in fact are honest businesses.  The consumer has to be informed
of rights before committing to any of these companies.  Knowledge is important.

I have written about the red flag signals before regarding a credit repair company, but I believe it is worth
putting the information in plain site again, so here goes:

1.  The credit repair company asks you to apply for an Employer Identification Number to use when
     applying for credit instead of your social security number. This is fraud.

2.  The credit repair company requires payment up front.  This is a violation of the CROA.

3.  The credit repair company does not inform you that whatever they can do for you, you can do
     for yourself at little or no cost.

4.  The credit repair company does not allow the client to contact the creditors on their own behalf.

The Credit Repair Organization Act is there to protect the consumer.  We as consumers also have certain
obligations.  One of them being it is our reponsibility to check who we do business with.

The most logical thing to do is consider all the options in front of us and choose wisely.

Read what the Better Business Bureau has to say about credit repair fraud and also information from
the Federal Trade Commission.

There is a difference between credit repair companies and credit relief companies.
Credit relief companies do not claim to eliminate your bad credit.  I have researched credit relief companies as stated in earlier blogs and I have found 2 that I consider to be worth considering:

Curadet

Debt Consolidation

Be informed and take control. I wish everyone the best.

"If you're walking down the right path and you're willing to keep walking, eventually you'll make progress" - Barack Obama