Your Questions About Eliminate Your Debts

Joseph asks…

Can she reduce/eliminate this debt?

In 2000, a friend qualified for disability and was receiving disability payments for about 3 years.

In 2003, she went to doctor on her own who deemed her fit to return to work.

She reported this to SSA. She was told that she could work for up to 8 months and still receive disability payments.

After this 8 month period, she called SSA and told them she no longer needed disability.

She was told that she would be notified of an SSA doctor exam to determine benefits.

The checks kept coming. And the check amounts kept increasing. She called many times and told them she was working.

She is finally notified in 2007 that she owes $23,000, payable immediately.

She appealed and was denied.

July 2009 she is called and asked how she intends to repay or they will be forced to garnish.

She is pressured into agreeing to paying 100/month to avoid garnishment.

My questions:
Is she liable for this debt?
Is there a way to reduce this amount?
Can we get a judge to hear this case and how would we proceed?
Advice is appreciated.

John answers:

Your friend knew she was not entitled to those disability checks. Why did she spend the money? She should have deposited the money in the bank and just held it or not even cashed the checks.

Being asked to only repay $100 per month is extremely generous. That’s almost 20 years to repay.

Michael asks…

paying off debts?

which should i pay off first with my extra cash, a $20,000 student loan with a 5% interest rate (164 a month), or a credit card with a $4000 balance at 14% (60 a month)? the student loan balance just never seems to budge.

John answers:

This one is very easy. Both schools of though would reccommend paying the credit card first. It is smaller(will get paid off sooner) and has a higher interest rate(will save you more paying extra on it).

After you eliminate your CC debt, I would focus on building an emergency fund(to avoid future credit card debt). If you earn 5% on a savings account you are keeping pace with student loan debt interest rate.

After building an emergency fund, I might consider making extra payments on the student loan debt if you want to buy a house at some point. Say if you want to buy 5 years, I would figure out the payment to retire the student loan debt in 5 years and pay that amount.

Steven asks…


Well, heres a big “WHAT IF” question (this has not happened)

lets say i do somehow get into credit card debt, lets say i somehow need to spend $2000 in a emergency situation. like my car broke down or somethin.

If i don’t have any money to pay it back in full, instantly, then i know i have to pay it back in monthly installments. along with interest, which differs person to person, card to card.

my main question, is that…..will having debt in that amount ($2000) ruin my credit? or will it help build it? because i wouldn’t have any $$$ to pay it back instantly, i would have to do the montly installments.

again, this is a big “WHAT IF” question. i’m usually really good with my credit card, i have never been in debt to it.

John answers:

Hello Sofaking,

Follow these 9 Steps To Tackle Credit Card Debt Problem

First of all, you can take comfort in the fact that you are not the only one fighting the credit card debt problem. There are hordes of people who might have an even worse credit card debt problem compared to you; all of them seeking to eliminate the credit card debt problem. So what is the solution to credit card debt problem?

Well, the solution really is to smash the credit card debt problem with full force and eliminate it completely. Now how do you do that?

There are many ways in which you can tackle credit card debt problem. Different people suggest different ways of tackling credit card debt problem. However, here is a simple step by step account of what you can do to get rid of credit card debt problem.

1. Take stock of the situation i.e. Draw up a table with the following fields – Credit card name, balance, payment due day (the day of the month by which you are required to make payment of your credit card bill), APR, reward points earned, redemption offers applicable for your reward points balance, remarks.

2. Fill the table up with data from your various credit cards.

3. Figure out which credit card is contributing the most to the credit card debt problem i.e. Highest APR and highest balance.

4. Check if reward points can be used to make partial payments or cover any kind of fees or if the points can be bartered for something you need (spending less means preventing the credit card debt problem from getting worse).

5. Draw a comparison table of offers available for eliminating credit card debt problem (i.e. Consolidating credit card debt).

6. First eliminate debt on the credit card that is contributing the most to the credit card debt problem.

7. Practice controlled and healthy spending habits (after all you are looking to get rid of credit card debt problem and not aggravate the credit card debt problem).

8. Look for alternative means of adding to your income (more money means earlier termination of credit card debt problem)

9. See your debt reduce with time and celebrate the day when you finally put an end to your credit card debt problem.

Remember this is just one of the ways of tackling credit card debt problem; you might devise your approach for doing away with credit card debt problem. Any and every approach is good if it fulfils the objective i.e. Eliminates credit card debt problem.

Lisa asks…

Would you pay a voluntary tax of $100 per month that would eventually eliminate the national debt?

A yes or no question as a survey for my AP US history class

John answers:


Here’s why.

We don’t have to pay off the debt. If we would just stop adding to it, we can easily afford to just pay interest on the debt forever. And actually, as the economy continues growing, tax revenues would grow, and interest on the debt would be less and less of our total tax revenues.

Sharon asks…

Debt settlement help?

I need to contact a debt settlement company to eliminate a ridiculous amount of credit card debt.
Has anyone worked with any companies that you can recommend?
Thank you

John answers:

It is better to seek help from any reputed debt settlement company to settle your credit card debt. Such companies can handle it properly as they are experts in that field. I took help of freedom debt relief to get rid of my credit card debts. I have joined their debt settlement program one year back and almost debt free now.

Powered by Yahoo! Answers

This entry was posted in Uncategorized. Bookmark the permalink.