Bail Yourself Out
Corporate America got theirs. Here’s how to construct your own financial rescue plan.
Debt-saddled Americans aren’t going to get any life-altering cash out of the latest stimulus plan; it promises to put an additional $7.70 a week into most paychecks. But it’s a sign of something bigger for many borrowers: The chance to build their own bailouts.
With some new debt-reducing tools, including a new foreclosure-relief program, and a bit of Washington-willed forbearance, it’s time for cash-strapped folks to get on top of their bills. Make that just-in-time: households are spending almost 18 percent of their disposable income just making their monthly minimum payments, according to the Federal Reserve Board. Average household consumer debt tops $23,000, down 3.1 percent from year ago-levels, as consumers spent much of 2008 holding the line on their spending.
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