IMPACT ON TAXATION & FINANCE

Living Debt-Free . . . Is It Kosher?

What is the correct thing to do — Stay clear of any debt, or to have lots of outstanding all over the place? This topic has been blowing in the wind for many years. Let us examine the horns.

I have a very close friend who doesn't owe any company or anybody, not as much as a dime. He carries no credit-card debt, no car loan and no mortgage. He claims he has always been able to live within his means. His simple motto is "I budget; I save; I buy."

Living in a nation where consumer debt has become a household word, thanks in part to the historically low interest rates, the notion sounds somewhat preposterous. Today the average college student steps brightly into the working world with no less than $20,000 in student loans. Consumer debt is supposedly the greatest prescription for damaging both your financial and physical health. The problem is worsening on a daily basis. According to the Federal Reserve, since 1995 non-mortgage consumer debt has increased 112% to nearly $2.4 trillion.

IMPACT ON REAL ESTATE

What Is A Short Sale In Real Estate?

By EDGAR HENRY

Short sales occur when a lender agrees to accept less than the amount owed against a property when there is not enough equity to sell and pay all costs of the sale. There are many ways to lose a home, but signing away ownership in a manner that destroys credit, embarrasses the family unit and strips an owner of dignity and honor is one of the hardest to bear. For owners who can no longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of those options is called a "short sale."