$700,000,000 Hummm......

[P'cola Denali]

So the $700 billion that we are using to bailout companies and banks in trouble, with if we cut a check for $140,000 to the 5 million Americans that have a mortgage under $2 million? You can only use the money to pay your mortgage and debts, any money left over you have to send back to the government. Think of how many jobs would be created to help give the money out by the government. I don't know about you but I would be able to pay my house off, which would give me $1400 a month extra to spend, thus stimulating the economy. Almost every American and his business would be mortgage free. Freeing up all that extra cash to spend.

 

Just a thought,

[tobias]

$700,000,000,000 <-- It just has a greater effect actually in billions!

 

As for the plan, I think you need to rethink that one.

 

That's not going to do anything but allow people who didn't plan well the first time to overextend and get into overwhelming debt yet again.

 

"Hey, I have $1400 a month free now, let's go buy a boat and a Corvette!!! Thank you, people who pay all of your bills and save money. Thank You!"

[2000DV4.8]

^ Agreed. If they were bad at controlling their spending once, they'll be bad at it again.

[DofD]

While a noble idea, but like the other guys say it wouldn't work out as planned. While some people would use the money as intended most would probably just go and spend the money on more fluff stuff rather than improving their general financial situation. :-/ We've had the government here try similar with helping people pay their rent money. The initial run just had people go and spend it on things other than rent. The program did get revised so that the money would go directly to landlords to assist with people's rent.

[Nick The Great]

I think you'd see an over night inflation of 1000% or something . . .

[Darkanion]

$700,000,000,000 <-- It just has a greater effect actually in billions!

 

As for the plan, I think you need to rethink that one.

 

That's not going to do anything but allow people who didn't plan well the first time to overextend and get into overwhelming debt yet again.

 

"Hey, I have $1400 a month free now, let's go buy a boat and a Corvette!!! Thank you, people who pay all of your bills and save money. Thank You!"

But but but... I could go get that ZR-1 I always waaanteeed!!!!!

[Wingnut]

Helping out people that bought a 400,000 house when making 32k a year is not something I'm interested in. Kick them the f out.

[Silverado4x4]

If everybody payed off there house and bills then the Mortgage companys would not make any money off of interest. But it sounds good though, if my house was payed off I would be fat and happy woo hoo.

[mbrannon]

I don't know that this might work.. Personally, I could think of a lot better things to save my money for. Like my sons college. Yep sure I'd prolly have a new car for the wife in the driveway. Only those of us in areas where the property values were not inflated would be able to pay off the house and credit cards. Those poor saps out in California, with their 2.5 million dollar 1300 square foot wooden shack, those folks won't even come close...

[mbrannon]

If everybody payed off there house and bills then the Mortgage companys would not make any money off of interest. But it sounds good though, if my house was payed off I would be fat and happy woo hoo.

 

True that some would go out of business, but as many have stated, there would be those with poor spending habits, that could not resist. Less than 30 days after pay off there would be a huge run on upgrading the McMansion. At this point, if the Mortgage Companies would do their due diligence on loaning money, they could be solvent, and have made good loans. Too many mortgage brokers made their living on bad loans and the selling of bad loans... I'm on my second house and have refinanced this one twice. Refinance the first time to pay off debt incurred after I injured my back. That put us in an ARM and we were OK.. I saw the righting on the wall in January of this year and Refinanced again, now that our credit rating had been restored to a respectable level, we got out of the arm and into 30 year fixed with a good interest rate.. So what I'm saying is that I have been run through the ringer by mortgage lenders over the last 8 years. I have never understood how those with Bankruptcy, and a clear history of failure to pay can go out, and buy homes far more expensive than there debt to income ratio should allow.