Q&A: Watching, waiting as debt-limit debate rages Kansas City Star
As Congress wrestles with the national debt dilemma, the uncertain future is preying on some investors' minds. Here with some advice is Jeffrey DeBoer, a wealth management adviser in Roseville, Calif. </p><p> </p><p> QUESTION: If Congress and the president cannot agree on a solution to the debt ceiling issue by the (Aug. 2) deadline, what's likely to happen to the U.S. stock market? Would it be smart to liquidate my IRAs into IRA money markets and/or liquidate our mutual fund portfolio?</p><p> ANSWER: The "debt ceiling" is the maximum amount of debt that the U.S. government can take on. For instance, the United States currently has a debt ceiling of just under $14.3 trillion, and the nations' debt is right up against it. In order to spend past this ceiling, Congress must agree to raise the debt ceiling by August 2.</p><p> Believe it or not, roughly 37 percent of last year's budget was financed through borrowing, so the ability to issue debt is essential to keep the government running. Default is unlikely, but the situation could lead to a partial shutdown of nonessential government services and benefit payments.</p><p> Nearly all market observers agree that Congress will raise the debt ceiling; it has done so many times. However, as we've seen recently, there will be a lot of partisan bickering over how to reduce the deficit. Most Americans agree that we cannot continue to spend at the current level.</p><p> Some economists say if there is not an agreement, we will face a catastrophe in the financial markets. Others believe it will be a non-event. I don't know who might be right; however, as with most uncertain outcomes, we could see heightened market volatility over the short term.</p><p> I do not feel it would be prudent to try to "time the market" and move everything to cash. However, in order to reduce your risk as much as possible, it is important to review your asset allocation and have a solid plan that meets your individual objectives.</p><p> Most financial advisers recommend that investors maintain a well-diversified investment portfolio consisting of bonds, stocks and cash in varying percentages, depending on your individual circumstances and objectives. But even with a diversified portfolio, it is important to be aware of the risks.</p><p> For example, with a rising national deficit, there is now a greater risk of rising interest rates, which could affect various parts of your portfolio, especially bonds. As interest rates rise, the value of longer-term bonds will typically decrease, so you might consider adding inflation-protected bonds to your allocation.</p><p> If you are concerned about severe market shocks, I recommend adding investment alternatives to your portfolio mix that can provide protection in case of severe market downturns, while also giving you a reasonable probability of inflation-protected returns. Some examples of alternative investments that might make sense are managed futures, tactical allocation funds, hard assets, precious metals and commodities.</p><p> Although these alternatives can help reduce volatility, it is equally important to be very well-allocated and never put too many eggs in one basket.
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I need advice about an old debt and my bank account?
I found out today that a hold was placed on my bank account with a large debt amount in my balance. When I went to the bank to inquiry about it, they said that a law firm put a hold on my account, that I must owe someone money. They gave me the number to the law firm, to speak to them when I called they said that I owe $1000 and change for an old credit card that I thought I paid up. My question is that can the legally do that put a hold on my bank account with out even contacting me first, I moved since I had that credit card but if they could find me and put a hold on my account, they could have spoke to me first I feel. Could anyone give advice on this matter and point me to sources where I can find out about my rights and legal options in this type of situation?
It sounds like they were able to obtain a judgement against you, after which they can take legal action to sieze assets or get money taken out of your paycheck. They found your bank account using your SS# but that doesn't mean they found where you live.
Call you bank and ask what authorization was used to put the hold on your account. They should be able to give you the information as to where the hold came from. Then its time to deal with the company to make arrangement to pay the debt. If there is a judgement, you will probably have to pay it before the hold is released.
Good luck!
They probably went to court and got a default judgment against you and have atttached your bank account to satisfy the judgment. Perfectly legal.
You can talk to the lawyer and negotiate a possible payment plan if they indeed do have a judgment against you. I am only guessing.
looking for advice about a debt settlement company?
I enrolled with Renaissance Debt Solutions out of MD and paid the initial $349 start up fee to help me with credit cards and a repo that I have been paying on for 3 1/2 yrs. I was not behind in anything at the time but am now. Checked with the BBB (after the fact) and the company has an unsatisfactory rating. Does anyone have any further information about this company before I just cut my losses and try to get back on track with my creditors myself?
wow, that sucks. have you tried taking out a loan at prosper to consolidate your debts? maybe its not too late.
Good Luck
http://savingmoney.iblogger.org
Good luck.
I used them several years ago and they lowered my monthly payments as well as my interest rate and I was debt free in 36-months.
You can contact them at 1-800-388-2227.
Can anyone give me any advice about getting out of debt?
I am so tired of applying for loans and getting turned down even though I have the ability to pay. My credit is horrible, I file bankruptcy 2 years ago, which to me means I obviously now have the money to pay on the loans that nobody wants to give me. Should I have just let my house go and lived in a cardboard box instead of trying to save evrything? I think I would have been better off. I almost need to file again but then what's the point if it doesn't help you or accomplish anything?
First of all you cannot file bankruptcy again so you're stuck with the debts. The last thing you need is a loan... you need a plan. I don't know so much about the cardboard box but maybe you should have considered downsizing your home to something you could have afforded because there is life after bankruptcy but you have to live within your means. Your only options now are to increase income or reduce expenses but don't take on new debt trying to get rid of old debt. If you have the money to pay on the loans that nobody wants to give you, apply it to the debts you are trying to get out of. Add to that additional income, reduce your costs, and build your credit over the next eight or so years. Consider getting a roommate, a part time business venture, an automatically funded savings plan, selling things you no longer need, and shopping for value on things you do purchase. Again, it all starts with a plan.
see what they can do for you worked for me ..good luck
I need help and advice about debt, help?
I really have lots of questions, and I dont know who to ask. I have been off sick from work and am getting barley any money, I have so much debt that I cannot pay, let alone the usual bills phone, electricity, rent etc. Also the debt people are phoning constantly and now the phone has been cut off...... will they send someone round? What do they say? what can I say to them? I have no money.... Will they be adamant and not leave? will they try and take stuff from my house? does anyone know the process? and how to handle the situation?,,,,,any advice would be so helpful to me,,,, thank you
The Citizens Advice Bureau will be able to give you good advice
and pay ZERO to all unsecured crditors.
they will charge off the debt as bad. then they sell the debt to a third party for about 10 cents on the dollar.
they will just wait around until you get solvent again then try to collect.
if you can live on cash and have no debt again , in ten years it will all just go away.
find a way to be self employed, like cleaning nice offices at night. only wages can be garnished, not revenue from a company you own.
after a messy divorce i defaulted on 60,000.00 in credit card debt, and ten years later it all dissappeared from my credit report. of course i learned my lesson and only live on what i earn, no debt, it feels great !!!
Best wishes
They will make sure you are receiving all benefits you are entitled to...eg rent...council tax
They will also refer you to a money advisor/specialist. You will be advised to stop paying all the non priority creditors and make sure your priorities are paid eg.. rent gas elec etc etc
When the creditors phone you tell them you will be seeing the CAB and if they dont back off state that their contacting you is harrassment...( that works)
No one can take anything from your home unless a court has said they can....baliffs
where can i get advice about debt consolidation?
my account was closed down after i have lost my job and i had a loan to pay
The best place to go is the Citizens Advice Bureau, the number varies according to where you live but you can find it in your local directory.
Alternatively you can visit:
http://www.adviceguide.org.uk/index/life/debt/help_with_debt.htm
http://www.citizensadvice.org.uk/
By: Talbert Williams
Here is a good article to start with. You can use this site to learn more about debt and finance.
http://www.debt-explained.com/category/Ways-to-Consolidate-Debt.html
Online Debt Consolidation
http://www.complete-debt-info.com/category/Online-Debt-Consolidation.html
http://www.moneysavingexpert.com
for UK advise on so many financial matters
there is a calculation but for the like of me i can not remember I'm sorry... it something like... dmi x single complain debt / total number of creditors..
Where do you go to find debt advice?
We all know that debt advice should be impartial. Other then government organisations, who do you trust to give you reliable debt advice?
Go to the public library and read a few books on getting out of debt. You can solve your own problems without spending money you don't have on "credit counseling." This is a very empowering option and you will use your new-found financial management skills for the rest of your life.
There are no "government organizations" offering financial services, debt counseling, etc.
There are non-profit counseling organizations, but be careful as many organizations claiming to help people become "debt free" or manage your credit card debt are organized as "non-profit organizations" but are expensive and hazardous to your financial health. There are too many and new ones crop up too frequently to track their names and too many ways to scam people to begin to list them all.
Question about medical debt, need advice?
My stepmom had surgery 1 year ago and was in debt since then, we can't afford health insurance.
now one of the doctors forwarded our case to this debt collection agency when we clearly made payment arrangement with them 1 year ago. they basically stopped sending us statement for 3 months and now we are seriously past due.
this debt collection agency is threatening us they will do whatever necessary to collect this money and threatening they will screw my stepmom's credit. Can they actually take our asset or whatever we had in our bank account? is this legit since we have already made payment arrangement with the doctor and we have NEVER missed a payment until they stopped sending us statement on purpose? We have to deal with 10 seperate doctors and we didn't realize this doctor hasn't sent us any statement until we got this letter from debt collection agency.
any advice on how to deal with them will be appreciated.
What i really want to know is.. are the debt collection agency abusing its power and do they have legal right to do what they are threatening us with since we never missed a payment?
I used to work for a company where we had to look at peoples credit. Now I was told that when we were passing or failing credit that under no circumstances were we allowed to fail a persons based on delinquent medical accounts. You can not help that you get sick. Now, as far as them abusing the power, yes they do in a sense but from personal experience, they can put something on your credit but they are supposed to specify what it is for. Now whether they do or not is another story.
What you should do is send them what you can. they are not going to turn away payments.
They can not touch your bank account at all. If so, no one would be in debt. Nor your assets.
They can threaten all they want. I have been in that position before and I actually stopped paying them, It eventually was turned over to another agency and I then was offered a lump sum settlement. ( i am not suggesting you do that, that is my temper.) Do not let them push you around.
I am in debt and would like advice about bankruptcy, who is the best person to speak to?
How about develop a plan to get out of debt and not file bankruptcy? Bankruptcy doesn't solve the problem. Many people that file bankruptcy just end up in debt a few years later because they didn't address the problems that caused them to go into debt.
For most people, the problem is just not managing their money well.
I would suggest you checkout Dave Ramsey (see link below). He teaches a course (Financial Peace University) that has helped thousands of people get out of debt and manage their money better.
My wife and I went through this course 2 years ago and it changed our lives. We're now debt free and helping others (by teaching the course) do the same.
Need some advice about debt.?
I have tried every avenue know to man. I called several of my creditors to try and get finances charges lower as to which only one lowered and the other said I qualified for a loan of 50.000 dollars and they said they would have given me the loan if my debt would not have been lower by 5000.00 dollars. Then one agency wanted me to stop paying my debts and send them 975.00 dollars for 6 months and then they would pay my bills. Which I refused to do. The rest says I have to pay late so my creditors will consider me a hardship case. But what if that does not pan out. I have no idea what to do.The others want so much for a payment that I just can't afford it...Any advice?
If I understand correctly, you have overextended your self on credit cards and are trying to pay off the debt yourself. DON'T go into debt to pay of debt, that is even worse... and that company for $975.00 is bs. stay away from it... here ya go:
There are several steps you should take to get out of credit card debt. Paying off several thousand dollars or more in credit card debt takes time, so you must discipline yourself.
1) If you have several cards, your first goal is to pay off the card with the highest interest rate. This process is called laddering.
2) Pay more money toward that credit card and slightly less toward the other cards, and eventually you can rip it up. Then you move onto the next card, and so on, and so on...
3) One proven way to pay more toward the most expensive card -- and to get rid of it faster -- is to make a separate payment every 14 days to the credit card company. Mark your calendar every 14 days and write that check or send your online payment that day. Making a payment every 14 days equals one extra month's payment you've made at the end of the year. Work these payments around your statement cycle to avoid paying lates fees.
For help during the process, contact the NFCC at nfcc.org or call 800-388-2227. And, for more help getting out of debt, check out the book Invest in Yourself: Six Secrets to a Rich Life by Marc Eisenson.
Where can I get free legal advice regarding credit card debt?
I'm searching for a web site or phone number to get free legal advice for credit card debt. I need a place that will give me an immediate answer. Thanks for your help.
In most areas, attorneys will give you a free consultation. As this is a credit card debt, you may want to look for someone who does collection work for companies, as they are more experienced in debt law. A lot of "general practice" lawyers have not impressed me on their knowledge.
