The Ramsey-Waller Bailout Plan - Solving the Debt Crisis Person By Person

Over the past few weeks I have been developing a plan to help many Americans during this financial crisis. Because the government obviously like to give whomever needs it money, and a common complaint is that only rich CEO's are getting bailed out, I feel it is necessary to come up with a fair, balanced bailout package that can be applied to common Americans.

So I present the Ramsey-Waller Plan, in 4 parts.

1. In order to establish elegibility, applicants for the Ramsey-Waller plan must have greater than $150,000 in debt to any source(s) and less than $1,000,000 in total debt. The payment purely to interest on that debt must equal 15% or greater of the applicant's total yearly income as proven on their IRS form 1040. An applicant must be able to establish their total debt based on 60 days before they apply for RWP status as an applicant. Any debt incurred after 60 days prior to application must be paid off in full prior to applying for RWP applicant status. All debt must be to legitimate sources. Debt owed through verbal agreements, gambling, or other non-binding sources must be converted to legitimate debt, and be documented, prior to 60 days before application for RWP status.

2. Upon acceptance a RWP applicant shall be called a RWP recipient. All debt owed by the RWP shall be assumed by the RWP Fund, and paid in full to the creditors to whom the debt is owed. The creditors shall report all debt to the RWP Fund and shall not pursue any debt collection from the RWP recipient upon their conversion from RWP applicant to RWP recipient.

3. The total debt payment on behalf of the RWP recipient shall be owed back to the RWP Fund by the RWP recipient. Payment shall be calculated as thus: Payments shall be made monthly totalling 15% of the RWP recipient's previous year's adjusted gross income as recorded on their IRS 1040 form. The total value of the RWP lend from the RWP Fund shall not accrue interest. However, the value of the RWP lend shall increase (or decrease) based on the government rate of inflation (or deflation). Additional payments by the RWP recipient are allowed, and the payments shall be made until the total RWP Fund lend amount has been completely repaid.

4. Upon acceptance as an RWP recipient, the RWP recipient forfeits the right to any future credit or incurrence of debt of any kind. The RWP recipient's name shall be added to a "blackball" list that shall be made available to all creditors. RWP recipients shall not be shown discrimination of any kind from employment or any other equal opportunity. The RWP recipient shall not be allowed to take out any loan, obtain a debit card, credit cards, gamble, finance a car, or purchase any items on a credit account of any kind. By accepting RWP recipient status, the lendee accepts the absolution of their right to credit. Layaway is exempt from this prohibition.

So there it is. I think it's a fair deal. There are a lot of people out there that climbed into an overpriced house, thinking they'd flip it, and now they're eating a $500,000 mortgage, plus their other debts. If they are facing foreclosure, and complaining that lending banks are getting a bailout, well, here's their solution. Just sign up for the Ramsey-Waller Plan, they get out of debt hell, but the door to Credit World shuts behind them. Forever. If the American Public is going to act like children when it comes to fiscal responsibility, and now they've fallen and bruised their collective knee, then it is fair enough for the government to show up with a band-aid for them. However, they don't get to play on the Jungle Gym anymore.


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