Joe the Plumber or Mary the Maid would argue that the 700,000,000,000 bailout has done little to ease the burden of the average citizen.  The banks who have received the infusion seem determined to hold on to the cash as much as the average consumer who isn't buying houses or buying consumer goods. 

I propose a plan that might really help the average citizen; as well as boost the economy should Congress decide to have another 700 Billion dollar bailout plan.  As usual, the irresponsible CEO's of the failed companies may have already ruined it for the rest of us.

If there is still some of the money left from the 700 billion, I would suggest that it be temporarily frozen until my bailout plan is considered.

According to credit.com, the outstanding credit card balances in all of the US at the end of 2007 was 972 Billion.  Now stay with me here and you'll see the beauty of my plan.  Our amount is a couple of billion more than the original amount, but in our scenario the economy will get it all back through new home purchases, increased spending opportunities and perhaps even investing.  It will take only one step to achieve our goal and get back to a stable debt free economy.

One Step Solution:  Take the 972 Billion (give or take a few billion by the end of 2008) and pay off all outstanding credit card debt.

-Now instantly, several things have happened by default.  The banks, credit card companies and department stores carrying the debt get a huge infusion of cash as well as being able to cut the collection department's budget.

-Their accounts receivable have been received and they can start fresh by issuing credit cards to those only with responsible credit histories.

-Consumers can now afford to live, save and spend as their entire paycheck is not going straight to debt payoff.  Another added bonus would be we can once again answer out of state calls without fear of a credit collection agency being on the other end.

-Consumers can now afford the home they are living in and won't have to face foreclosure.

And the greatest benefit of all is that everybody's credit would instantly improve.  (Of course you'll have to charge a little bit right away to keep it high, but that's another article). 

With the debt to income ratio well under the standard, qualified applicants can now realize the pride and joy of home ownership once again.

Now that is a bailout that benefits everybody and stabilizes our economy at the same time.  Plus, I can get back to doing what I love best:  Selling houses. 

Don Fourtner
Coldwell Banker Town & Country
Sequim, Washington
www.sequimrealestateonline.com