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Bush Administration Will Pay off Credit Card Debts of Americans
In USA the number of Americans who can't afford paying off the mortgage loans is growing continuously. The number of the houses, which the credit holders can't pay off and have to return to the banks, reached the record breaking size. According to the data of Association of Mortgage Loans in USA, the level of past-due liabilities in the fourth decade of 2007 increased from 5.59% to 5.82%. And the number of debtors, refused to make overwhelming payments, has already exceeded million. Since 1953, when the association has started to collect such statistics, this is an absolute record.
The experts forecast that this year more than 2 million American families will have to abandon their own homes and move to the rented ones. Credit card companies (like Visa and MasterCard) realize with horror that once stable and reliable real estate market gradually sinks, as the number of deserted houses is increasing day by day. Last week, Ben Bernanke, the head of the Federal Reserve System of USA turned to the management of American banks with a request to write off the mortgage assets, if the debts exceed the cost of the mortgage property. Bernanke also retranslated the promise of Bush to the Federal Housing Authority, demanding to provide support to insolvent but conscientious debtors with bad credit situation.
Still California and Florida are showing the worst statistics, as 21% of all the issued credits falls on the citizens of these states. Debtors from these states account for 30% of all the debtors in the country. In Michigan, Ohio and Indiana they still have the high level of nonpayment and further eviction. These states mark the high level of unemployment, bad business credit situation, the demand for the houses falls down, and population moves to the more favorable parts of the country. The statistical data about record nonpayment was collected only at the end of the last year. G. Bush promised to provide support to the temporarily insolvent consumers. Now the experts are expecting the results from the first decade of the 2008, which will show how the authorities fulfill their promises.
The US authorities made a decision to help conscientious debtors, who became the victims of housing crisis. G. Bush and his administration are going to pay off the part of their debts. The details of credit debt relief mechanism are still developing. It is expected that G. Bush will voice the real proposals when he comes back from the European tour.
According to the information of Washington Post, the plan of the support of debtors is not made up, but they lead negotiations with the banks to acquit conscientious debtors of the part of the debt. The authorities promise to make up deficiencies in banking accounts.
Actually G. Bush promised to help Americans twice - first, in August 2007 through the refinancing program FHASecure, and then prior to New Year in his annual appeal. It should be noticed, that it's not the first time when financial crisis makes the White House to invest public funds into the payment of the debts of ordinary Americans.
Comments
just another utopian idea of bush
I underston this to be a program to assist an individual. I do need assistance in paying off my bills
