Discussion»Questions»Outside the Mug» Given only these two choices, would you rather give away $10,000,000* to 100 poor people, or pay off $10,000,000 worth of their debts?
Where debt is concerned, we already have a bankruptcy system. I would essentially be paying money for nothing. If the debts are that bad, the individual should be filing for bankruptcy. Granted, not all debts qualify, but most do. Then again... a mortgage is also a debt. I could be paying off their homes or paying off a chunk, which I would feel good about. :/ How much wiggle room do I have here? I wouldn't want to hand them a chunk of money and have it go to a credit card company. Bah. I guess I would give them the cash to spend how they wish. However, if possible, I stipulate that they had to take some kind of financial literacy course before any money was paid out and would likely break the money up into payments.
What have you been drinking, smoking, shooting, or snorting? Bankruptcy usually involves people who at one point had money and now do not, and the majority of people who started out poor never file for bankruptcy because they haven't ever had enough money to get to that point.
Poor people file bankruptcy. Anyone who is trying to do better in life could potentially file. Now, people who are destitude and living on the streets etc are not gonna file bankruptcy. Years ago, we had a business fire and got behind of bills, we considered bankruptcy, ended up using debt negotiation. Were we poor? We qualified for welfare so you tell me.
The majority of bankruptcies are a result of unforseen medical issues...that has nothing to do with having money. It has to do with no insurance or losing insurance because of an illness not allowing one to continue working.
This post was edited by my2cents at March 2, 2018 7:12 PM MST
My2Cents made perfect sense. Most people go into bankruptcy due to unforseen circumstances, not mismanaging money. Getting sick is a big one. Not only are you unable to work if you're seriously ill, but you can rack up a massive bill in no time. The hospital won't kick you out due to your inability to pay, but it will go after you via normal collections processes, which can include wage garnishment. Bankruptcy would clear those debts. The other big one is divorce. You may be able to operate your household with both individuals working, but try splitting those checks between two different households and you'll quickly see how little there is to go around. Another big one is job loss. Considering that most of America lives paycheck-to-paycheck, most of us are only one unforseen incident away from personal financial meltdown. One could argue that failing to set aside an emergency budget is mismanaging money, but when you don't make a lot to begin with and you're struggling to afford groceries, you're SOL when one of those issues comes along.
This post was edited by Just Asking at March 2, 2018 7:11 PM MST
If we're talking about a developed country like the US or Canada I would pay off some debt for people. Their homes, car payments and student loans because some people can't be trusted with money. They'll go straight to the liquor store or the casino or to their drug dealer or on a vacation or they'll just buy more stuff without ever paying off their debts.
Truly poor people probably don't even have food or running water let alone debt. I could give away that money in a third world country, but I don't know if it would help. They probably need resources and medicine and supplies that they can't get there. I would need to use the money to bring them the things that they need.
This post was edited by Summer at February 28, 2018 10:53 AM MST
I would not do either. I would find a better way to use $10 Million not including spending it on my family or me. Poor people need a chance, not a handout.
Neither choice. I'd rather take the money and really help them with housing. If you split all the money between them, what do they have? A few dollars that will last how long? They still will be homeless. 10 m in one lump sum has more power to do good than spreading it out. No telling what other people might chip in along with that 10m. Land to build tiny houses on for the poor and seniors plus other items. Allow others to join in the fun of making a difference. 10m million seems like a lot but it would go fast among so many poor. Better to pool the money and donated assets to really make a difference. There needs to be a housing program - NOT like HUD - something that will not only help people but inspire them to use the assistance in a productive way.
Just Asking 