the people's bailout
Out of context: Reply #5
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This is a bad idea. As uuuuuuu stated, it doesn't solve where the debt is generated. Who can you trust to pay their debt if there are groups popping up to to pay your debt for you? What keeps someone from buying too much on credit then resorting to these tactics?
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Since 1967, the debt held by the American public has increased from $1.4 billion to $972 billion in 2007. That's an increase on average of $24.265 billion per year. If you look at those numbers more recently, from 1997 (when that debt totaled $597 billion) to 2007, it is averaging an increase each year of $41.7 billion.
Using the last set of numbers, not accounting for inflation or market implications, that puts the American public's debt at an approximate $1.18 trillion as of today.
According to the numbers listed in the article above, $500 is 3.57% of $14,000 and $50,000 is 5% of $1,000,000 with an average buy of 4.29%.
4.29% of the aforementioned $1.18 trillion is $50,592,857,142.86.
That's $50.6 billion dollars that would need to be raised to buy out the current debt owed by the America credit card holders.
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More info on credit card holders in the US: There are approximately 609.8 million credit cards in the US. Considering that each credit card holder owns on average 3.5 credit cards, you can deduce an approximate number of credit card users in America at 174,228,571. This equals out to $ $1,935.88 per credit card or $6,775.58 per person.
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When you realize that large number of $1+ trillion gets spread so thin through roughly 175 million people, I see no need for another person or organization to pay your debt off for you, especially at a rate of only 5% of what money was actually spent. If you want to own a $20,000 boat you should pay $20,000, not $1,000 as this model is showing.
The money is not free, it does not appear out of thin air nor is the credit card issuer forcing anyone to spend beyond their means. If the credit card company is left holding the bag, expect them to dry up and go away, no credit for anyone, regardless of your credit score. If the boat retailer is left holding the bag, don't expect them to stay in business for more than a season.