Real Estate & Property Law
Never Mind: Texas City Nixes Plan to Pay Personal Credit Bills with Public Funds
Posted Feb 24, 2009 2:55 PM CST
By Martha Neil
In an effort to increase the pool of potential homeowners, the city council of Houston was considering paying some personal credit card bills with taxpayer funds.
But a public outcry has persuaded the city's governing body to remove the proposal from its agenda, reports the Houston Chronicle.
By giving individuals grants of up to $3,000 to pay off their credit cards, the city could have helped them increase their credit scores by a crucial 10 to 20 points. That would have been enough to change a no to a yes for some in a city homebuyer assistance program who can't qualify for mortgages under current standards.
The proposal was just too controversial, however: “We just can’t give away government money to help people with their credit scores,” said Councilman Mike Sullivan on Monday. “You’re giving them other taxpayers’ money to pay off the bills.”
Updated at 7:45 p.m. to reflect revision in linked Chronicle coverage.
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Comments
B. McLeod
Feb 24, 2009 3:41 PM CST
Right. It would be fundamentally wrong to give individuals money to pay off their debts. This sort of thing is only good for large banks and corporations.
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gea
Feb 25, 2009 6:59 AM CST
Good Point, McLeod and good question, what is the difference? Why help a businessman or businesswoman, but not their past or potential customers. And, why help the bank, who can’t pay its bills, but not the 401k losers? hmmm
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jose
Feb 25, 2009 8:10 AM CST
I am glad my rich neighbors will help pay my strip club and drinking credit card debt. Thank you houston. I will go out and have another drink of you.
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frozee
Feb 25, 2009 9:02 AM CST
Jose - Do you mean as opposed to AIG asking their poorer neighbors to pay for their all expenses retreat? Or for to pay bonuses to stockbrokers who LOST money for their clients?
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JD
Feb 25, 2009 7:13 PM CST
Two wrongs don’t make a right. Bailouts to banks were one of the biggest mistakes this administration has made; but just because that has been done, doesn’t mean that the mistake needs to be repeated at a local level.
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