Jonas Jacobson

It is hard to escape the coverage these days of the "Occupy Wall Street" and "Occupy Boston" protests. One consistent theme from the media, with respect to the protests is that the protestors are not coherent in their demands.

In my work with people in debt, I have noticed some running themes. Without regard to any other issues, I believe that the following "demands" would go a long way to helping my average client:

• Some kind of Government sponsored health care. People regularly come to see me who are in foreclosure as a result of health problems and medical bills. If private HMOs had to compete against a free government option, prices would normalize, and people might be able to pay their bills. Medical debt and unemployment are - in my personal experience, the top two reasons people lose their homes to foreclosure.
  

• A Federal Cap on credit card interest rates. Some of the people who come to me declared bankruptcy as a result of massive credit card debt - which they paid instead of their mortgage. This is a terrible idea, FYI, please always pay your mortgage first! Credit card companies only limitation on interest rates are those provided by their state of incorporation. Wyoming, South Dakota, and Delaware, allow for no usury limits. Not surprisingly, this is where "the 99%" of credit card companies are organized. A Federal ceiling on interest rates would allow more people to pay these debts before they spiraled out of control.
  

• Student Loan debt must be dischargeable in bankruptcy. It saddens me how many young people come to me looking for a way out of student loan debt. There are very, very few ways out (though it doesn't hurt to ask, since I don't charge for the phone consult). Affording former students the promise of bankruptcy - a fresh start - would allow them to try new things with their lives, to outgrow their debt, and to rebuild their credit. People ARE capital. And, at present, there are millions of indebted students on the sidelines, unable to buy homes - and get us out of this mortgage crisis, because of student loan debt.
  

These simple changes in law would change everything for so many of my clients. THIS statistical analysis would tend to support my empirical observations.