Personal Debt-Information On Average Personal Debt, Personal Debt Consolidation Loan, Personal Debt Consolidation

A. Harris asked:


I just consolidated my personal debt to a Bank of America “Gold Option Loan” and I don’t know if I did the right thing;

Private Loan – $10,100 … 13%APR
Credit Card 1 – $6,800 … 14%APR
Credit Card 2 – $4,900 … 0% 1year, 14%
Credit Card 3 – $3,000 … 0% 1year, 14%
Credit Card 4 – $1,000 … 0% 1year, 14%
Total = $25,800

The “Gold Option Loan” is for the above total debt amount. The terms of the loan were as follows, 96 months at a 16% interest rate with NO PREPAYMENT PENALTY. I know what you’re thinking… 96 months woah, I just agreed to that term so the minimum payment would be “low,” but I plan on paying more than that (just needed a safety net that’s all). The interest rate is “fixed” unless god forbid I miss a payment but with automatic bill pay I don’t forsee that happening. It seemed like it would 1.) help me pay off my debt faster and 2.) make my life a lot easier it terms of monthly payments. Did I do the right thing? Anybody else have this loan? Thanks…
What if in a couple of months I decide sell everything I have and pay off this consolidated loan how would I calculate the total payoff amount?

Tanner Goldhorn

lazlo_dei asked:


First look at this chart:

http://zfacts.com/p/318.html

The line is Debt/GDP (in percent). Currently, the debt is about $11. trillion, and the GDP is about $14.5 trillion. Thus, the US Debt is about 80% of the US GDP.

Imagine that a househould makes $145,000 and has $115,000 in debt (like say a mortgage and some credit cards). Is this person in horrible debt? No…it’s not bad at all.

For example, a household that makes $75,000/year with a mortgage of $125,000 has a debt to income ratio of 160% (TWICE as much as the US debt/gdp ratio)…but since the monthly income is about $5000 (after taxes…which the US doesn’t have to pay) and the monthly mortgage payment is only $1000, the household is doing quite well.

Let’s move on to the credit market debt. Some people are afraid of that the total credit market debt (combined government, corporate and personal debt) is now an all-time record of over 350% of GDP (as of Q4 2008).

Imagine, a household with $100,000 in annual income and has a $350,000 mortgage.

This would equate to a debt to income ratio of 350%.

Question then: Is this household in trouble given that they have a $100,000 annual income and a $350,000 mortgage with no other debt?

I would suggest that most people would say that this household is fine. If so, then why is the US debt/gdp ratio such a big issue?

Further, there are many people who are calling out the statitics that the US government are using. They (and I) claim that the US gov is using fear-mongering techniques to justify the nationalization of the car and banking industries, of stealing from our 401Ks, etc.

Up until the 1970′s (where Carter had the lowest debt/GDP ratio), the US government used to use an aggregate debt/GDP chart as its litmus test. This chart/report added together household debt and corporate debt, both financial and non-financial. You cannot find such an aggregate chart ANYWHERE on the internet…oh, plenty have been put on the internet, but all mysteriously have broken links to the chart. For example, http://www.businessinsider.com/2009/2/us-debt-levels-are-fine-debt-to-gdp-chart-is-wrong-and-meaningless.
The GDP increases as fast or faster than the debt.

A unsecured loan puts the risk on the lender (which ain’t us). If the lenders called the White House and demanded money their money immediately, we would just laugh at them. We are the 800-pound gorillia who has borrowed bananas from baboons…what is the baboon gonna do? We have the biggest military, we have the productive workforce, we have the great infrastructure. We are the ones with the superior negotiation advantage.

But all this talk about credit card debt versus mortgage debt does bring up an interesting question: how much does the US pay back per month? What is the interest rate? Is it all T-bills?

Turd Ferguson: I am a big Dave Ramsey fan, but I seriously doubt the US monthly debt ‘payment’ is more than 25% of the US monthly GDP ‘income’ ($1.2 trillion).

If anyone can tell us how much the US ‘pays’ back on its debt per month, that would be great.

Daisey Weisgerber

skinny minn asked:


I had an accounts at Wachovia that were transferred over to Wells Fargo with the merger. I owed money to Wells Fargo for a closed business act. (corp). The girl who opened my act. knew about this and assured me the my account would not be closed and that Wells Fargo could not take money out once the merger took place.

Well now I just found out that my acct is Froze and they are closing both my accounts and taking the money from my personal act. to satisfy the old debt of my closed Wells Fargo, Business act (corp.) I thought the whole point of having a corp. was that it is a sep. entity and that your personal assets cannot be attached to it? Am I missing something?

When I told this to the bank they told me that b/c my name is on the Corp. as “owner” they have a legal right to take money from my personal account.

This really put me in a bad financial position now. Can they do this?

Yon Ransbottom

colesuncoast asked:


I am in Australia. I basically want to consolidate debt. I want to roll all my payments into one and save some money on interest and not have to worry about people wanting there money. I can afford the loan payments with know proble but I have defaults on my credit file. Does anyone know who will help?

Hailey Bayon

Shreyas asked:


I have a personal loan from a private financial company in Dubai UAE? I have lost my employment in UAE and forced to come to india. I got a call from the loan company asking for installment as the same is unpaid from 3 months. They said they ll be depositing the security cheque and tht bounces they will file a case against me. What is the consequences of this me being in india? Can I have any trouble in India? All I asked them is time but they cant give me.
Please help….

Andres Hottel

Luna asked:


I have an outstanding debt, part of which was garnished from my personal checking account in 2007. My daughter is starting a business and wants to get me involved, but I am afraid that if my name is on any of the business bank accounts they will garnish those accounts. Can they do that?

Gary

Niki asked:


A company called ACS contacted me claiming that i have a debt that i never paid, they told me my ss#,name,address,and date of birth. They claim that they are going to take me to court and i need to pay over the phone with a credit card. They have no address and they speak with a deep accent. I’m afraid because they have all of me personal info.

Clint Wedgewood

patrick asked:


i took out a loan about 4 months ago and the were calling me and sending me letters witch is normal when you default on a loan but a employee for the loan company started coming to my house can they do that if they are not a debt collector???

Hassan Handel

labellewg asked:


Do you know of any reputable debt consolidation companies? I have 2 credit cards and 1 personal loan, for about 20k, that I would like to consolidate into one bill. Any options or suggestions no how to do this?

Christen

Chase Them With The Truth asked:


and Congress keeps piling it on. I have enough of my own personal debt much less the amount of debt being piled on from Washington DC. I am beginning to think it is deliberate policy by Congress to have so much debt that the people will work to pay the taxes, debt, and for all the social programs that America will be, in effect a socialist/communist nation.
Wow – that is twisted… The current administration is spending triple what the last administration spent. And congress is letting it happen…
Wow – that is twisted… The current administration is spending triple what the last administration spent. And congress is letting it happen…

Cary Italiano