We'd all like to enjoy the immediate benefits available from a wide spread and all encompassing program of debt relief, but responsible heads of household (and heads of government) must still recognize that a proper form of fiscal management relies upon more than just erasing past obligations. for the family figureheads obsessed with just making it through the overgrown thickets of outstanding bills, a sudden and instantaneous forgiveness of all of the loans attached to the breadwinners' name wouldn't mean that much if there wasn't going to be a paycheck arriving at the end of the month. Delving even deeper into the macroeconomic underbrush, absolving former patients of the money that they may owe to a hospital or medical care facility isn't likely to result in long term success if the larger questions surrounding American health coverage aren't addressed.
From insurance concerns to very real worries over the educational lending crisis, it's easy to see why protestors might decide that the banks at the end of the paper trail should be held responsible for substantive debt settlement, but, difficult as it may be for the Occupy Wall Street crowd to recognize at the moment, the pillars of the financial industry do more than simply line their vaults with the interest sweated out from the men and women somehow tricked into signing off on owing credit card debt balances. Entrepreneurship and the sort of courageous corporate momentum that builds industry and puts men and women to work demands the free flow of credit arranged according to rigid guidelines, and hounding the titans of finance to the point at which they could barely avoid bankruptcy shan't bode well for anyone's future.
Certainly, the logjam of foreclosed upon properties choking real estate appraisal prices across the nation would argue for some far more logical system of obtaining restitution (while threatening reprisal to forestall the moral hazard ever held up by our more conservative political commentators as purported consequence of a credit card debt relief jubilee). When members of the government anticipated the upcoming damage to be wrought upon real estate markets and the housing industry as a whole should residences continue to be placed upon the auction blocks following foreclosure, the handful of relevant lenders agreed to push forward a modification of terms of repayment intended to ameliorate those mortgages most in jeopardy of default for the worst reasons, but the failure of even these limited goals should serve as stark reminder of the hurdles any meaningful debt relief venture must face.
In the end, despite restricting programs to only those homeowners with sterling credit and a spotless employment history who'd done nothing wrong but agree to loans so bizarrely structured as to virtually guarantee successively greater payments with each passing year, little was accomplished through the much ballyhooed modifications beyond reams of self congratulatory publicity showering praise upon lending executives supposedly thinking two steps ahead to safeguard the American economy and the elected officials who theoretically mediated the hoped for debt settlement initiatives. If anything, many property owners reportedly lost claim to family residences primarily because the thoroughly unregulated process was so haphazard and intrinsically ill founded as to delude title holders about the necessity of maintaining constant payments. While this one endeavor shouldn't forever turn our governmental leadership and corporate partners against every spot of debt relief, it's hardly spurred talk of more constructive and elaborate efforts.
What The Failed Mortgage Modification Programs Suggest About Consumer Debt Relief
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