How About a Credit Amnesty?

by: Robert Melaccio, Sr

Sound crazy well think again. That money is lost and it will impact the taxpayers of America like it or not. Zero, from zero is still zero. You can't get blood from a stone. So a Credit Amnesty will in my opinion stop most if not all of the litigation and it will put money back into the pockets of Americans NOW. Along with capping interest we can make an impact and help a turnaround ASAP.

How can we do this.

1- We take all the debt that will never be repaid, regardless of what they pursue, there is nothing to get from people. Ruin their credit, what credit and zero, plus zero is still zero. So allow those Credit card companies to get a write off over time. Sort of depreciation of the debt. That puts money into their pocket. They do this anyway and the debt is already insured for failure as we all know.


2- The card holder will not be freed of that debt but that action gives them X dollars immediately. Real cash as it become available to them and it keeps those who are now on the edge from falling over. Yes and it stops the calls, harassments, the legal activities and provides breathing room to pay critical and essential items like utilities, gas, food, rent.

Now people will say why reward default and I agree. No free ride. So while zero from zero is still zero and you can't get water from a stone I say once these people get back to work, or if they are currently working, they will be taxed a percentage of their take home pay, or from any year end return they may get. Lets say according to their outstanding debt on a scale basis until paid back to the American people.

Now settlements are made every day. Our government can settle with both, just like these Credit Card Companies and the IRS do for pennies on the dollar. That amount to be paid by the debtor over a fixed term depending and on age and with no prepayment penalty. In hardship cases it would be forgiven and written off, just like they do now.

They only credit a defaulted person will be eligible for is the deposit type until all is repaid. That credit can be with a fixed rate, limited fees, penalties and charges that will help families immediately.

Too simple, not simple, well like I said it is what happens everyday. If you want to get this nation moving credit wise you need to remove that bad credit debt as well and do it now. Destruction is not the answer and this action, like with home foreclosures, will make a real and immediate impact to all markets and investors alike. Yes especially investors who will get the tax benefit write off and the card holder who will be unencumbered and hgave money in their pocket.


Robert T. Melaccio Sr. 2008 Copyright ©2008 Robert Melaccio Sr