Should Obama erase debt?

iVillage Member
Registered: 01-15-2010
Should Obama erase debt?
4
Fri, 01-22-2010 - 6:11pm

This is a friendly debate topic.

I was watching Obama's town hall meeting earlier and really liked some of the items he addressed about jobs and credit cards and such. Here is my debate topic:

Should Obama erase all debt that has already been charged off in order to give American's a new chance? We know the companies that charged these debts off don't really expect to be paid and have already claimed it as a loss for their taxes. Would it be beneficial to the current state of American economy to just erase that debt and give everyone a "do over"? What if it wasn't new charge off stuff but say anything that has been in collections and/or charged off for say 3 years or longer could be erased.

Ideas, debates, anything?







Please click here to visit my website to fulfill all your Gold Canyon candle, personal care or home cleaning needs. Also if you want to be a rep, I am always available!




Please click here
Avatar for sohappilyme
iVillage Member
Registered: 03-26-2003
Fri, 01-22-2010 - 6:48pm

I still remember the discussion we had with my ILs about how he could have given every (registered, voting) American over 700k with the amount the govt spent on bailout money. (I didn't do the math myself, but I saw it on the news). Honestly, I think that would have been a huge boon to the banks b/c I don't know about you but I'd be debt free by now and I'd have bought a lot of building supplies for my new house and a couple of banks would be using my money while it earned interest for us!

Personally, I'd rather seem him forgive medical bills - in most cases, they couldn't be helped. But at the same time, our govt is in way too deep and I think they have a lot of work to do before they just start handouts. However, I believe that anytime another group can say "no fair" (like anyone, in the case you mentioned, who may have tons of debt but not THAT kind of debt) that backlash will occur. The same would be the case with medical bills, of course, but again, few of those are a result of irresponsible spending.

I don't look for a handout from the govt, though. We take full responsibility for our debt and we are busting our tails to get out of it. We've been blessed with the ability to do so, and that makes it nobody's problem but our own.

(Before anyone blasts me, I'm really not into the whole political thing. I won't even defend myself, LOL.)

Photobucket









FLINGING DEBT:
Sarah
iVillage Member
Registered: 01-15-2010
Fri, 01-22-2010 - 7:24pm
I was going to add the question of "would you take it" as a question as well but I didn't want people to feel "called out". I agree that medical bills aren't generally something you rack up on purpose so that would be an understandable forgiveness. I was just thinking the owed company already took a loss many, many people can't afford to live and many of them may, if given the chance, be able to make a nice financial stand in life. Of course, there are those that would go and screw it all up again. It was just a thought I was having after reading how once a company charges something off they have like a 95% expectation that it will never be paid.






Please click here to visit my website to fulfill all your Gold Canyon candle, personal care or home cleaning needs. Also if you want to be a rep, I am always available!




Please click here
iVillage Member
Registered: 12-29-2008
Sat, 01-23-2010 - 6:56pm

I totally agree with Sarah.

iVillage Member
Registered: 07-05-2006
Sun, 01-24-2010 - 10:35pm

It took me many times (at least 3) of getting into debt and coming out of it before I really started to analyze my problems. This last time of 'recovery' has been a life changing experience and I have gone through a whole journey to get here. I have learned many things, one of the major ones being that we needed a change in career and lots more income before we were ever going to be able to maintain a lifestyle that suited us and our kids. If someone would have just given me the money during my hardest times, I can pretty much guarantee that I would have never gone through the pain and suffering of trying to overhaul our life.

I am living a much better, more enlightened life. I have a better understanding of why I felt the desire to shop for things I didn't really need. I would say that I'm happier with less and I am more proud of what I have and what I can accomplish on less money. I've learned to shop smarter, make a dollar stretch and I'm not afraid to really go after something I really want. Take this whole private school experience. I would have never had the perseverance to go through this whole process before, but here I am in the last week of the process. I've gone to interviews and tours and workshops. I've filled out the financial aid form and am putting together the intensive application. I've saved the money to pay the application fees. I'm just amazed at what I have accomplished because I never would have had the determination or the self-esteem to do this before. If I can get out from under 30,000 dollars worth of debt, cut off my dependence on my parents, go from making $400 dollars a week to almost $1000 in a few years, I can do anything! I have raised myself up! I have become a new person!

This journey is something that you have to turn towards on your own. I've had plenty of 'windfalls' come along and bail me out. An inheritance from my grandma bailed me out a few times! How sad to have wasted that money! But I didn't waste anyone elses money this time! This is the time where I actually stopped the cycle. All cases are different but I've seen it in a lot of people. You have to learn on your own.

I agree though, medical debt is different. I'm just talking about consumer debt.