Dear President Obama,
For the past two years, I have worked with people who are striving to get out of debt–all the while trying to get out of debt myself. Some of them have lost their homes to foreclosure and I have seen how it can ruin a life to lose a home. When I think of how many people have lost their homes recently, I come close to tears. This country needs to find a solution that is easy to follow, cost effective, and most of all, it has to work.
The problem is a complex one, but it boils down to the fact that people are spending more than they’re earning. They are burdened with bills. Some of these bills are necessary and some are not. The cost of living has really gone up. Living in the lower middle class, I know how tough it is to make ends meet. For one thing, there is not enough to go around, but there is no help because you’re over the income limits for federal aid. Not that I think the government should hand out money to fix it, but there is definitely a gap between the people who qualify for help and those who are just above these limits. Since the problem is so complex and people’s budgets include more than their homes, it needs to be addressed from more than just a mortgage standpoint.
As a struggling family, each month, you have to decide which bills are most important. You make choices about whether you need insurance or a home; whether to pay for internet connections and phone bills or the car payment. Can you eat a few more beans and rice, or do you get to have fruit and vegetables? Can you pay for diapers and wipes or will your two year old finally decide to use the toilet? You think to yourself that it would make sense to sell the car and get a more affordable one, but the amount you owe on the car is more than it’s worth and you cannot get out from under the loan. President Obama, I respectfully request that car loans should be paid off as fast as cars depreciate, so that the loan amount is never more than the car is worth. People need to be able to sell their cars when they cannot afford them. Please make lenders provide loans that will follow this rule.
Then, no matter how hard you try to keep track of everything, there is always a bill that automatically comes out that you forgot about. Then you’re overdrawn and you have a couple hundred dollars of bank fees to pay, because once one thing bounces, the rest of your budget is gone. It’s like dominoes falling over and starting a chain reaction. The hardest part is that you tried so hard to avoid it, but you still feel terrible and the banks don’t care. They sink their teeth in and rob you of more money than you have. So, President Obama, how about limiting the amount that banks can charge for overdraft fees in a single month. And while we’re dealing with banks, lowering the borrowing limits for mortgages needs to be first on the list. People are getting in way over their heads on mortgages just because someone told them they could afford something that was way out of their price range. Even with a modest mortgage payment, it can be hard to come up with the necessary monthly payments.
Then, the youngster gets an ear infection in the middle of the night or on the weekend. There’s nothing you can do. You know they need antibiotics, but if you go to the emergency room, they charge you $600 or more. The antibiotics are only $12 or less and you have seen it before. The baby screams on and you end up going in. If only the antibiotics were available over the counter, you tell yourself. It’s obviously an ear infection and it’s silly to have to pay so much to get the same advice you could give in your sleep. President Obama, how about allowing people to buy antibiotics over the counter after answering a brief questionnaire? You can have the pharmacy administer the questionnaire through their touch screen displays where you already sign for the medicine for your insurance. It’s just an idea, but I think most parents are savvy enough to know if their child has an ear infection after they’ve been through it a time or two. Maybe have an otoscope at the store and check to be sure. It only takes less than a minute.
People are overextending themselves, signing up for more monthly payments than they can afford. Something that seems so innocent can turn into a contract of debt and frustration. Cell phones and cable and satellite TV seem to be the most prevalent for contracts. They sound so necessary and they trick you with free phones and installation. Then, you sign away a year or two of your life with no credit check, no budget worksheet, nothing to help you decide if this really is affordable. When you look through your bills and try to cut the fat, there’s no way to get out of the contract unless you pay $200 or more. Meanwhile, your family has little food because you bargained for more than you could pay. President Obama, please make these companies offer a month to month term as well. It may mean you give up a small discount, but being able to keep your budget flexible is important these days. Could you also have some sort of credit check or debt to income ratio required to enter into such contracts to make sure people can afford these things?
President Obama, I know that these things may seem trivial and small when viewed individually, but having lived this life of debt just above the legal poverty limits for years, I know what kills our budget and I know that if I had help in these areas, I could make ends meet each month, and that could mean the difference between keeping the house, and foreclosure. These changes would be easy to execute, cost effective, and very helpful in keeping people out of trouble.
Thank you for considering these solutions. I respectfully request that these changes be made.
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Doing well. Thanks Jennifer. It’s great to see you. Thanks for the vote of confidence. I appreciate you. Hope to see you around.
Hi Amy
How are you doing? Long time since we connected. Great letter.
Thanks, Chris. Yes, it would be nice if he would do some common sense things. It doesn’t have to cost billions of dollars to make a difference.
Hey Amy,
I really love your letter! Wouldn’t it be nice if we could get our political leader to follow through with some common sense solution for the working class. Instead of focusing so much on big business
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James,
Thanks for the insightful comment. I hadn’t heard of CVS doing 1-minute flu clinics. That’s great news!
Amy,
This is an excellent letter as it hits home on a couple points. First, there’s the debt death spiral- once people get into it, it’s hard to get out. I’ve seen good people go bankrupt by running up their debt because they spend more than they make. And it’s just so easy to get loans, credit, etc….
The second point is about the antibiotics. It would be nice if there were certain medicines that pharmacists could sell to a sick person but could not be obtained over the counter. I think CVS is starting to address this with their 1-minute flu clinics, but it would be a lot better than having to pay for a Dr. (or worse, ER) visit to get medicines that one obviously needs.
Great post,
James
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Wow! Thanks for the vote, Steve. Good to see you, again!
Amy Boyack for Congress !
I’d vote for you.
hummmm
Sarah Palin needs a running mate. . .
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