If you’re one of the 0.057 percent of Americans –roughly 175,000 out of 305 million — who are in line for$140 billion in Wall Street bonuses this year, you may be wondering why the government is spending $787 billion of your hard-earned tax dollars for “economic stimulus.” After all, your employers got their $23.7 trillion bailout for causing the financial crisis and everything is hunky-dory now. Your bosses spent $5 billion for lobbying in Washington over the last decade and got an ample return on that investment, so why not just pull up the stairs and take off?

But if you’re among the 15.1 million unemployed or part of the other 99.943 percent of America who are not doing so well these days, you might feel that the government is not doing enough for you. While the administration claims that its stimulus plan has saved or created a million jobs so far, that is nowhere near enough. But more help from Washington is coming: Fortune reports that another $84 billion in government spending and tax breaks is headed your way.

That package is designed to be small enough to be politically palatable among the crowd now clamoring for a balanced budget. And the $84 billion will be divided among five programs, which include the following (ranked by their estimated cost):

Job credits creation: $27 billion. As I posted, this program would give employers a tax break for creating new jobs. It would amount to 15 percent of new wage costs in 2010 and 10 percent in 2011 and could create 5.1 million jobs.

COBRA premium subsidy extension: $25 billion. This would extend a government program that pays for 65 percent of the cost of the premium for COBRA — a program that allows terminated workers to stay on their former employer’s health insurance plan — for up to nine months for workers laid off between Sept. 1, 2008, and Dec. 31, 2009.

Home buyer tax credit expansion: $16.7 billion. This would extend beyond November a temporary government program that offers people making less than $75,000 a first-time home buyer tax credit. So far, 1.4 million tax filers have taken advantage of the program, and 15 percent of them bought their homes specifically because of the $8,000 tax break.

Emergency payments to seniors: $13 billion. This would pay seniors, veterans and the disabled $250 each next year to make up for the lack of a Cost of Living Adjustment in their social security checks due to an absence of inflation.

Sometimes it makes sense to borrow – a lot of times it doesn’t.

It’s almost impossible to live debt-free; most of us can’t pay cash for our homes or our children’s college educations. But too many of us let debt get out of hand.

Ideally, experts say, your total monthly long-term debt payments, including your mortgage and credit cards, should not exceed 36 percent of your gross monthly income. That’s one metric mortgage bankers consider when assessing the creditworthiness of a potential borrower.

It’s far too easy to spend more than you can afford, especially when you pay by credit card. The average U.S. household with at least one credit card carries nearly a $10,700 balance, according to CardWeb.com, and personal bankruptcies have hit record highs in recent years.

Of course, avoiding debt at any cost is not smart either if it means depleting your cash reserves for emergencies. The challenge is learning how to judge which debt makes sense and which does not and then wisely managing the money you do borrow.

Good debt includes anything you need but can’t afford to pay for up front without wiping out cash reserves or liquidating all your investments. In cases where debt makes sense, only take loans for which you can afford the monthly payments.

Bad debt includes debt you’ve taken on for things you don’t need and can’t afford (that trip to Bora Bora, for instance). The worst form of debt is credit-card debt, since it usually carries the highest interest rates.

Sometimes the decision to borrow doesn’t hinge on how much cash you have but on whether there are ways to make your money work harder for you. If interest rates are low, compare what you’ll spend in interest on a loan versus what your money could earn if it were invested. If you think you can get a higher return from investing your cash than what you’ll pay in interest on a loan, borrowing a small amount at a low rate may make sense.

Obama administration unveils plan to prop up state and local agencies that provide mortgages to first-time and lower-income homebuyers.

Just as federal officials seek to wind down many bailout programs, the Obama administration announced Monday yet another initiative to prop up the housing market.

Administration officials unveiled a plan to aid state and local housing finance agencies, which provide mortgages to first-time and lower-income homebuyers and enable the development or rehabilitation of rental properties. Officials declined to put a pricetag on the program, but said there would be no cost to taxpayers.

“This initiative is critical to helping working families maintain access to affordable rental housing and homeownership in tough economic times,” said Treasury Secretary Tim Geithner.

Under the initiative, the Treasury Department, along with Fannie Mae (FNM, Fortune 500) and Freddie Mac (FRE,Fortune 500), will purchase housing bonds issued by the finance agencies. This will give the groups the funding needed to make new loans. Also, the government will provide a temporary credit program to allow the agencies to refinance their existing bonds to more favorable terms.

The measure will enable housing agencies to lend to hundreds of thousands of families and enable the development or rehabilitation of tens of thousands of rental units, administration officials said. The agencies operate in all 50 states and in many cities.

The agencies will pay fees to participate in the program, which officials say will cover its cost. They are still working with the agencies to determine the extent of support needed. Earlier news reports said the initiative could cost as much as $35 billion.

The finance agencies have had a tough time funding mortgages since the bond markets went haywire last year. As a whole, they are operating at only 20% to 25% of their usual capacity, with some groups halting their lending completely, said Susan Dewey, president of the National Council of State Housing Agencies.

While the administration says the program comes at no cost to taxpayers, the Treasury Department is ultimately responsible if an agency defaults on its debt payments.

The agencies have a good track record. They generally make 30-year, fixed-rate mortgages and require full documentation. The delinquency rate on agency mortgages is comparable to that of prime loans given to homeowners with good credit backgrounds, according to administration officials.

While the government is starting to pull back its support of the banking industry, officials said it is too early to tell when it will withdraw from the housing market. Congress is considering extending an $8,000 tax credit for first-time homebuyers, which ends next month.

The credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, by the end of November, according to estimates by the National Association of Realtors.

As a result of rising unemployment, and a growing number of complaints against creditors and collectors for aggressive and sometimes illegal collection practices, more consumers are seeking the services of reputable debt settlement companies, like those that are members of TASC.

“Our member companies are trained and skilled at working with multiple creditors on behalf of consumers,” Chris Kesterson, president of TASC, said. “At the same time, we’re surprised some creditors like credit card companies are turning their backs on hundreds of millions of dollars immediately available to them to settle these accounts. Consumers are saying to their creditors, ‘we want to pay’.”

TASC’s research shows more than $500 million in settlement funds saved by consumers are available to credit card companies today. This is an important finding as the credit card industry charge-off rate now exceeds 10 percent.

According to a report from Automated Access to Court Electronic Records, bankruptcy filings in the United States now exceed 6,000 per day. Reputable debt settlement companies such as those that are a part of TASC—a non-profit watchdog for the industry—can help consumers avoid being a part of that statistic. One reason is that debt settlement companies can often negotiate with creditors to settle for less than the full amount owed.

“Every day the debt settlement industry assists consumers in navigating through their financial straits,” Chris Kesterson, president of TASC, said. “Our staff members are knowledgeable and experienced in working with creditors, who are willing to take a settlement over getting nothing with bankruptcy.”

Debt settlement provides consumers with a three-year plan to get out of debt without the 10-year stain of bankruptcy on their credit report. Bankruptcy also is time-intensive and can be difficult to apply for, if a consumer even qualifies, Kesterson added.

To illustrate debt settlement as a growing choice over bankruptcy, TASC revealed recently that the industry returned more than $2.2 billion in consumer debt last year. In addition, TASC’s research shows more than $500 million in settlement funds saved by consumers are available to credit card companies today.

National Debt Management Inc. was established to help families in financial trouble find their way back to solid ground. Our Debt settlement and loan modification programs  help our clients reach their goals. These options help avoid Bankruptcy, Foreclosure, and the ‘Do Nothing’ approaches. Every person is experiencing some sort of hardship during this economic downturn. The financial pressure is increasing, luckily there are solutions!

Loan Modification: A mortgage negotiation is the process of reworking the mortgage terms with your housing lender. This specialized program helps consumers r adjust their loan payment terms in their favor. Our loan modification program is one of the most effective and cost efficient alternatives to foreclosure and short sales.

Loan modifications are easily approved due to the benefits for the lender. They save a borrower, save the time, money, and hassle of foreclosure, and avoid losing your business to a competing lender. The result is an affordable payment and the ability to stay in your home!

Debt Settlement: Also known as Debt Negotiation, s the process of negotiating an outstanding balance of unsecured debt owed to a creditor. Simply stated, it is an agreement between a creditor and a borrower to pay off a debt at a reduced amount. Our credit card debt negotiation program is one of the most effective alternatives to debt consolidation and bankruptcy.

SETTLING DEBT IS YOUR RIGHT.

Once enrolled in our program we will begin working immediately by contacting your creditors. Negotiating on each of your debt accounts helps you embark on the journey of becoming debt free. Debt Settlement works effectively due to the benefits to your creditors. They will receive a portion of the money owed rather than receiving none at all. This is why creditors are willing to reduce debt to unbelievably low amounts.

Debts we can work with:

• Credit Cards
• Store Credit Cards
• Unsecured Lines of Credit
• Unsecured Personal Loans
• Medical Bills
• Reposessions

Benefits of Debt Settlement:

• Reduced balances from 40% to 60%
• Relief of debt in lass than 48 months!
• No repayment of future interest!
• Becoming Debt Free!!

Call today for a free consultation, and mention that you saw this article for a discount! 1(800) USA-1551.