The debt ceiling is a cap set by Congress on the amount of debt the US government can borrow. This debt applies to both public debt (U.S. bonds for example) and debt owed to federal government trust funds (such as Medicare and Social Security funds.)
Let's look back in history, because having a debt limit wasn't the way federal spending was originally set up. Prior to 1917, the US Congress would approve each debt issuance separately. Basically, every time the federal government needed to borrow money to meet the country's obligations, Congress came together to approve or disapprove. Since the United States of America's inception, the US Government had incurred debt - especially during war times like the American Revolutionary War. Throughout the early history of the United States, there were times of many surpluses and deficits. And although the national debt had reached $2.7 billion dollars following the Civil War, the US Government changed its practice and returned to running surpluses for the next 47 years - experiencing 36 surpluses and 11 deficits over that time period.
But with the passage of the Second Liberty Bond Act of 1917, the practice of running surpluses changed. This act gave the U.S. Treasury significant flexibility in administrating debt. This act granting the Treasury the authority to issue debt as needed to fund government operations as long as the debt did not exceed a certain set amount (the debt ceiling.) In 1917, this debt ceiling was set at $11.5 billion. And with additional changes to the law in 1939, Congress has continued to increase this debt ceiling several times over the past several decades, with the most recent debt ceiling increased to $14.294 trillion on February 12, 2010. And now, the US Congress is considering raising the limit again. On May 16, 2011, the U.S. government hit the debt ceiling.
And although the debt limit has increased 74 times since 1962, when is enough, enoughall Is it time to look back at the fiscal discipline following the Civil War when surpluses where 55% more likely than deficits.
Other questions to consider: Why even have a debt limit anyway if it is increased every time the country reaches that limit? Does the debt ceiling really control spending? How high is too high?
As Congress debates over the coming weeks to raise the debt ceiling or to make deep, drastic spending cuts in order to meet the government's debt obligations, these leaders need to rethink its practices and begin dealing with this debt crisis head-on. The current debt limit of $14.294 trillion has reached a critical point in which we cannot borrow anymore.
The international economy has hit a debt wall. Meaning the capital available in the world's economy is not there to cover the debt. This concept of a debt wall has hit families all across the United States. Bankruptcy has seen many homes and businesses across this country. The federal government is not immune to the issue of bankruptcy. Common sense tells us otherwise.
America has to cut spending. And the debt ceiling must not be increased in order for this issue to be dealt with in a practical way with swift action before the US federal government hits this devastating debt wall. Debt Settlement Programs: Four Steps Every Applicant Must Consider
It might seem that a debt settlement program is the solution that can save your financial future. Technically this is true, but it is essential to choose the right program if any real benefits are to be enjoyed. The problem is that pressures from creditors can rush us into choosing the wrong program from unscrupulous lenders.
The setup of the financial services sector is anything but clear-cut, and the largest firms and institutions actually own many of the smaller services. This means the debt to a single bank (like Citibank, for example) can be much greater than thought.
And while choosing debt relief is the wise decision, it is important to keep in mind the difficulties in securing good terms when the debt to a creditor is very high. Still, there are many debt settlement options available online.
The Debt Network
It is important to realize just how interconnected so many of your branded credit and debit cards, and utilities are. Many are simply branches of the same bank or financial institution. This means that debt owed to a bank may be vastly larger than first thought, making it difficult to get good terms on your debt settlement program.
Not everyone knows that three of the biggest banks in the US are also involved in many of the largest utilities companies. For example, Citibank owns AT&T Universal, Sears and most of the gas cards on offer (Chevron, Exxon, etc). Discovery, meanwhile, owns Lowes & Sams cards, and the FIA cards are owned by Bank of America.
What this all means is that when it comes to choosing debt relief options, it is important to realize that more than a single credit card debt is part of the packet. The card provider will add on everything, making it possible for the debt settlement deal to be rejected by the lender.
Avoiding the Online Trap
Financial services provided over the Internet need to be carefully considered before committing to anything. There are, unfortunately, many unscrupulous lenders and financial service providers who are willing to take advantage of consumers, and excellent debt settlement programs can turn out to be traps.
But there are steps that can be taken to ensure such traps are avoided. They are:.
1. Only Trust Lenders Who Ask For Statements
There is a tendency for unscrupulous lenders to talk up their fantastic offers in an effort to get what they need as quickly as possible. Often, they do not even look for bank statements or confirmation of financial status. But the right debt settlement plan depends on your specific situation. So, avoid those that do not seek relevant documentation.
2. Experience Is Essential
It is generally not a good idea to choose a debt settlement program from a lending firm that has been in businesses of less than 5 years. Experience is essential in this sector, so the last firm needed to manage your finances is a start-up company. Settle for a firm that is at least 5 years old.
3. Always Check Lenders Out
It is completely foolish to trust any online lender on face value. Always take the time to check on their credentials, and feel completely comfortable before choosing a debt relief program. So, check out their BBB Reliability Report and know whether consumers have been complaining about a prospective lender.
4. Seek Out A Licensed Attorney Based Firm
Attorneys are governed by the BAR Association, not the FTC. The advantage is the consistency of the BAR Association, whereas the FTC regulation changes can play havoc with schedules and plans. Also, the BAR Association insists on extremely high standards so debt settlement companies can be relied upon.
Let's look back in history, because having a debt limit wasn't the way federal spending was originally set up. Prior to 1917, the US Congress would approve each debt issuance separately. Basically, every time the federal government needed to borrow money to meet the country's obligations, Congress came together to approve or disapprove. Since the United States of America's inception, the US Government had incurred debt - especially during war times like the American Revolutionary War. Throughout the early history of the United States, there were times of many surpluses and deficits. And although the national debt had reached $2.7 billion dollars following the Civil War, the US Government changed its practice and returned to running surpluses for the next 47 years - experiencing 36 surpluses and 11 deficits over that time period.
But with the passage of the Second Liberty Bond Act of 1917, the practice of running surpluses changed. This act gave the U.S. Treasury significant flexibility in administrating debt. This act granting the Treasury the authority to issue debt as needed to fund government operations as long as the debt did not exceed a certain set amount (the debt ceiling.) In 1917, this debt ceiling was set at $11.5 billion. And with additional changes to the law in 1939, Congress has continued to increase this debt ceiling several times over the past several decades, with the most recent debt ceiling increased to $14.294 trillion on February 12, 2010. And now, the US Congress is considering raising the limit again. On May 16, 2011, the U.S. government hit the debt ceiling.
And although the debt limit has increased 74 times since 1962, when is enough, enoughall Is it time to look back at the fiscal discipline following the Civil War when surpluses where 55% more likely than deficits.
Other questions to consider: Why even have a debt limit anyway if it is increased every time the country reaches that limit? Does the debt ceiling really control spending? How high is too high?
As Congress debates over the coming weeks to raise the debt ceiling or to make deep, drastic spending cuts in order to meet the government's debt obligations, these leaders need to rethink its practices and begin dealing with this debt crisis head-on. The current debt limit of $14.294 trillion has reached a critical point in which we cannot borrow anymore.
The international economy has hit a debt wall. Meaning the capital available in the world's economy is not there to cover the debt. This concept of a debt wall has hit families all across the United States. Bankruptcy has seen many homes and businesses across this country. The federal government is not immune to the issue of bankruptcy. Common sense tells us otherwise.
America has to cut spending. And the debt ceiling must not be increased in order for this issue to be dealt with in a practical way with swift action before the US federal government hits this devastating debt wall. Debt Settlement Programs: Four Steps Every Applicant Must Consider
It might seem that a debt settlement program is the solution that can save your financial future. Technically this is true, but it is essential to choose the right program if any real benefits are to be enjoyed. The problem is that pressures from creditors can rush us into choosing the wrong program from unscrupulous lenders.
The setup of the financial services sector is anything but clear-cut, and the largest firms and institutions actually own many of the smaller services. This means the debt to a single bank (like Citibank, for example) can be much greater than thought.
And while choosing debt relief is the wise decision, it is important to keep in mind the difficulties in securing good terms when the debt to a creditor is very high. Still, there are many debt settlement options available online.
The Debt Network
It is important to realize just how interconnected so many of your branded credit and debit cards, and utilities are. Many are simply branches of the same bank or financial institution. This means that debt owed to a bank may be vastly larger than first thought, making it difficult to get good terms on your debt settlement program.
Not everyone knows that three of the biggest banks in the US are also involved in many of the largest utilities companies. For example, Citibank owns AT&T Universal, Sears and most of the gas cards on offer (Chevron, Exxon, etc). Discovery, meanwhile, owns Lowes & Sams cards, and the FIA cards are owned by Bank of America.
What this all means is that when it comes to choosing debt relief options, it is important to realize that more than a single credit card debt is part of the packet. The card provider will add on everything, making it possible for the debt settlement deal to be rejected by the lender.
Avoiding the Online Trap
Financial services provided over the Internet need to be carefully considered before committing to anything. There are, unfortunately, many unscrupulous lenders and financial service providers who are willing to take advantage of consumers, and excellent debt settlement programs can turn out to be traps.
But there are steps that can be taken to ensure such traps are avoided. They are:.
1. Only Trust Lenders Who Ask For Statements
There is a tendency for unscrupulous lenders to talk up their fantastic offers in an effort to get what they need as quickly as possible. Often, they do not even look for bank statements or confirmation of financial status. But the right debt settlement plan depends on your specific situation. So, avoid those that do not seek relevant documentation.
2. Experience Is Essential
It is generally not a good idea to choose a debt settlement program from a lending firm that has been in businesses of less than 5 years. Experience is essential in this sector, so the last firm needed to manage your finances is a start-up company. Settle for a firm that is at least 5 years old.
3. Always Check Lenders Out
It is completely foolish to trust any online lender on face value. Always take the time to check on their credentials, and feel completely comfortable before choosing a debt relief program. So, check out their BBB Reliability Report and know whether consumers have been complaining about a prospective lender.
4. Seek Out A Licensed Attorney Based Firm
Attorneys are governed by the BAR Association, not the FTC. The advantage is the consistency of the BAR Association, whereas the FTC regulation changes can play havoc with schedules and plans. Also, the BAR Association insists on extremely high standards so debt settlement companies can be relied upon.
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