How to Keep America From Turning Into Greece

Greece, in the throes of a debt crisis, is running a deficit near 10 percent. The United States is also running a deficit near 10 percent. So the headline is inevitable: Are we Greece?

We're not.

Paul Krugman produces this graph of the countries' short-term deficit projections

Now, that's short-term. Before you interpret those shrinking red bars as evidence that we're in the clear by 2012, remember that the United States' projected pain is slated to begin later in the decade, when health care inflation hitches a ride on the retirement of tens of millions of baby boomers, sending the government's Medicare responsibilities soaring into the 2020s.

We're not Greece for a lot of reasons: we control our own currency, we're more productive, we have a much stronger economy and while we suffer from tax avoidance like many countries, Greece faces epic shortfalls.

But we are like Greece in the simple respect that we've conditioned the electorate to expect more services and fewer taxes ad infinitum. And We the People consistently elect politicians who promise to preserve that imbalance. I've been asked a few times to produce something like a dream budget for America 2020. Here's a start:

1) Institute a revenue-neutral VAT with off-sets to employer payroll taxes to make it slightly progressive, but grow the VAT to 8 or 10 percent over the next five to ten years. (I'd also entertain arguments for a carbon tax, but I'm less sold on Pegouvian taxes as dependable money machines and we'll need a dependable money machine before we "solve" the medical inflation conundrum.) Eliminate the mortgage interest deduction. Broaden the corporate income tax base by eliminating loopholes especially on repatriated income, but lower the rate.

2) Raise the retirement age for Social Security, indexed to longevity. It's important to do something with Social Security before Medicare because it's easier to move the full retirement age than to put a straitjacket around medical inflation. Tweaking this entitlement would be an important signal to international investors that we can be serious about our deficit drivers. (We should be open to other SS adjustments, like raising the taxable income ceiling.)

3) Put a freeze on discretionary spending -- not on each department, but the whole thing, to allow for flexibility. Keep PAYGO. Convene a commission on defense spending to find costly weapons programs to cut, bases to sell, and other savings.

In the next decade, we'll need to work out Medicare, which is a hydra of at least three heads: tax rates, benefit levels and organization, and medical inflation. It's a beast. And fodder for another article.

How to avoid credit repair scams

If you're looking for a legitimate operation to repair your bad credit, proceed with caution. In a sea of credit repair companies, you'll find a lot of pirates.
It's best to try to improve your credit on your own, but if you're intent on working with a company, do your homework, says Clarky Davis, who writes the Debt Diva blog for CareOne Credit in Columbia, Md. "Check with the Better Business Bureau and your state attorney general to see if they've had any complaints registered against them."
Gail Cunningham, a spokeswoman for the National Foundation for Credit Counseling in Silver Spring, Md., says there are several tactics that scammers might use to try to improve your credit. One common scheme has scammers swapping your current Social Security number for a new one to give you a clean financial slate. But your Social Security number will connect them to all your accounts.
In another scam, they inundate credit bureaus with questionable "dispute" claims. The move would clear the claim from your file for up to 30 days, just long enough to snare better loan terms or a credit card. These plans are unethical, and they fail to repair the poor money habits that pushed you into serious debt in the first place.
Perhaps even more common is the do-nothing strategy. Schemers promise results, collect a fee and do nothing. And when a skeptical buyer checks in to see why he hasn't seen a change in his credit score, the credit repair firm has vanished.

Free credit score law could help consumers, while debt consolidation can lower credit card bill

Having high credit card debt or being late on payments can lead to lower a person's credit score.

However, the actual affect of these actions may not be known to consumers, as they have to pay a fee to get access to their score. This may change with a law proposed by Mark Udall, a Democratic senator from Colorado.

Through the Fair Access to Credit Scores Act, Udall wants to make scores available to consumers when they gain access to their credit report. Federal law already mandates that people have access to a free report from the three bureaus every 12 months.

"These free reports include information such as the number and credit lines of open accounts, as well as consumers' repayment, loan and employment histories, but not the score number that banks, lenders and even employers rely on so heavily," Udall said.

Consumers who have high credit card debt will find that their credit scores are affected negatively. However, an option they may consider is debt consolidation, which can lower the amount of interest people pay. It can also make it easier to pay off debt by reducing multiple statements into one.ADNFCR-2800-ID-19743092-ADNFCR

Too Much Credit Card Debt? Easiest Ways to Get Legitimate Debt Relief For Credit Cards

Every time you have too much credit card debt and every time you are not in a position to repay them it is the right time for you to think about debt settlement. When an individual is having debts, particularly credit card debt, which is the bad amongst them because of the inevitable outcomes of it, citizens are inclined to look for a lot of ways to eliminate debt. However, as I can advise it is realistic to think about debt settlement whenever you have too much of credit card debt.

If your debt is less than 10,000 dollars, then there is no requirement of consulting debt assistance experts in settlement companies. That kind of small sum of debts can be effortlessly settled if you consider sensibly regarding that crisis and if you make use of a well planned procedure to work them out. However, if your debt is in excess of 10,000 dollars then it is the time you must think about debt settlement with the aim of getting debt release.

If your debt is over 10,000 dollars, it is sympathetic for you to settle on debt settlement instead of looking for any other alternatives, since you can simply get rid of at least 50 % to 60 % of your credit card debt, which is a grand opening for an individual having too much of financial difficulties. You can acquire the most from the stimulus money which is provided by the government. In accordance with the latest regulations initiated by US government, they have launched a method of paying government funds to the credit card companies with the purpose of getting their losses back which take place as a result of the inevitable debts of the clients. Due to the recession existing in the state it is a tough time for the credit companies also.

Therefore, simply if you appoint a debt settlement company, you can get the help from the stimulus money also. It can furthermore facilitate you in obtaining a large cutback of the unpaid amount. In the intervening time debt settlement procedure may raise your life to a debt free life by offering you the essential suggestions to get a power on your expenditures too. As a result, every time you are seriously in debt, it is the most excellent time to think about debt settlement, if you actually desire to end your financial crisis.

Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals. To compare debt settlement companies it would be wise to visit a free debt relief network which will locate the best performing companies in your area for free.

Banks Flock to New Credit Card Debt Relief Formula that Shows Consumers how to Reduce Credit Card Debt for Pennies

New credit card debt relief formula, developed by www.paymentreduction.com using latest debt settlement guidelines, gets banks running ahead of all others, to reduce credit card debt 70% or more for high debt consumers starting to suffer financial hardship.

High debt consumers are finally getting debt relief with the new "Debt Away" www.debtaway.cc debt relief program from paymentreduction.com. This program uses an exclusive debt relief, debt settlement formula, designed by and available only through paymentreduction.com. This special debt relief, debt settlement formula, automatically calculates just the right combination of (income, cost of living, tax bracket, hardship and more), to get the banks and credit card companies running to reduce credit card debt up to 70% for consumers suffering hardship. This exclusive debt relief formula was developed primarily for cash strapped consumers who have found themselves using credit cards for day to day living expenses, and now find themselves $20,000 or more in unsecured debt.

The founders of paymentreduction.com and developers of the "Debt Away" debt relief formula, are highly successful executives from the banking industry who after years of observing the high credit card interest rate practices of the Banks and Credit card companies have switched sides to give back and help the average consumers find debt relief and financial help in these tough economic times.
"More and more banks are embracing our "Debt Away" program and formula as a way to minimize their losses on high risk debt", saving thousands on discounted collection losses and legal fees". says Client Services Director Todd N. Its really helping struggling consumers who have found themselves over $20,000 in credit card and other unsecured debt such as medical bills, get real debt relief and back on their feet. "Its win-win for both bank and credit card holder" says COO H. Eugene

How To Best Eliminate Credit Card Debt

It's actually not uncommon for people not know exactly how much credit card debt they owe, especially if that credit card debt is spread out on more than one credit card.
If you or someone you know is struggling with credit card debt, you are not alone. Credit card debt affects most people and most families in America today. There are steps and processes which you can take to get yourself out of debt. With the credit card debt programs of today, it is possible to eliminate up to 50% of credit card debt in most cases.

It's actually not uncommon for people not know exactly how much credit card debt they owe, especially if that credit card debt is spread out on more than one credit card. Debt, and the total of this debt therefore needs to be determined, hard as that may be to face, before one can begin to take the necessary steps to begin breaking free from this credit card debt.

With the debt relief programs of today, it is possible to eliminate up to 50% of credit card debt in most cases. This is debt that can be forgiven, and never needs to be repaid.

Debt relief works fast, is proven to be effective, and can work for you. To learn more about the debt relief programs available in your area and how to get started, please visit Debt Relief at:

www.debtrelief.bz

Credit Card Debt Consolidation: Know Your Debt Relief Options

Los Angeles, CA (PRWEB) April 9, 2010 -- Crippling growth in credit card debt has seen a steady rise ever since credit cards were first introduced in America over 50 years ago. Since then, Americans have had a lifelong love affair with credit cards and buying & spending on plastic. But that love affair how now run its course. Federal Debt Relief Program - a private, non-government program, discusses the issue of credit card debt and what the best debt relief options available today are.
It's not uncommon for individuals and families today to be using credit cards to make ends meet, using plastic to cover monthly deficits in their personal household budgets. Not only is this practice not uncommon, it's become a virtual necessity, especially when one suffers a job loss, illness, serious injury or other crisis.
Yet credit cards have their spending limits, and there are personal limits as well as to how much one can afford to pay each month. And this is where credit card debt relief programs can help.
Debt Consolidation - One of the oldest debt relief programs, debt consolidation is a program in which, typically, a new loan is taken out to pay off existing loans or credit card bills. This new, single loan offers the convenience of a single monthly payment to manage, and possibly a lower interest rate and/or a fixed rate.
Yet consumers need to be wary of debt consolidation loans that are packaged in the form of home equity loans. In these cases, one's home is used as collateral. This may or may not be a problem down the road, so long as the borrower is able to maintain making their monthly loan payments on time.
Debt Settlement - One of the newer debt relief programs today, debt settlement is a program which only works for unsecured debt such as credit card debt and medical bills. Mortgage loans, government loans, and student loans are not eligible for debt settlement. In this type of program, outstanding debt is negotiated between a debt relief firm working on behalf of the consumer in debt, and their creditors. In most cases, unsecured debt can be reduced by up to 50%, allowing for the balance to be paid off in much quicker fashion.
Consumer Credit Counseling - In this program, credit counselors work with those in debt to examine their finances, determine strengths and weaknesses, establish a budget, and possibly negotiate better payment terms for those in debt. Consumer credit counseling works best for those who are employed, and who are able to stick with a monthly household budget.
With this many options of credit card debt relief programs available today, there is no reason for anyone to continue to suffer under the weight of unbearable amounts of credit card debt which they are unable to pay.
Federal Debt Relief Program offers a free debt evaluation and savings quote, which can be taken advantage of at their website:
www.federaldebtreliefprogram.com