A landowner planned to sell property to a developer who put money into an escrow account. The developer defaulted on the contract and the landowner received an escrow payment. The landowner wants to know whether the escrow payment will be taxed as ordinary income or a capital gain.  

May 27, 2008 

Using government debt data and census data, IndexCreditCards.com has determined that the average American adult is carrying $4,246 in revolving debt and the average American household is carrying $8,218 in revolving debt.

These numbers represent a 19% and 13% increase, respectively, over the averages calculated by IndexCreditCards.com in January of 2006. At that time, the average debt per adult was $3,560 and the average revolving debt per household was $7,271.

Data released earlier this month from the Federal Reserve Board estimates that revolving consumer debt in the United States totals $975.2 billion. Using census data from 2006 to the present, IndexCreditCards.com estimates the adult (18 and over) population of the U.S. at 229,655,039 and the total number of households at 116,462,357. Dividing the total revolving debt by the population/household figures gives the resulting debt averages.

Revolving debt is mainly debt from credit cards, although related revolving consumer debt such as home equity lines of credit are included as well. Note that not all revolving debt is long-term debt accruing interest — some of this debt is paid off each month (although pinpointing how much is difficult). However, the trend shows that more and more purchases are being put on credit cards, and undoubtedly the amount that sits unpaid grows as well.

“A 19 percent jump in revolving debt in two-and-a-half years is difficult to believe,” says Justin McHenry, Research Director at IndexCreditCards.com, “but that’s what the numbers tell us. Part of this jump can be explained by the increased use of credit cards in general, including by those who pay off their balances each month. But the jump is too drastic to be explained so easily. Americans are taking on more debt, and there’s every reason to believe they’re having a harder time paying it off.”

we opened the “Disney Money” piggy bank today…Ale had $15.03
I told her as soon as we come back we have to start another piggy bank (they sell them here at the marketplace…any shape and size imaginable!)…and she said: what would that be for? …I told her I wasn’t sure…could…

Our offices are relocating…All my stuff/ general office stuff is already packed. I also had to pack boss#1’s stuff, since we were told on Wednesday that we will move on Tuesday and, he had requested the day off today so he could travel…which means he should have packed yesterday,…

I estimated $70 pre-tax on the new translation job, and it actually came out $67.68.
Done and delivered! (well, sent!)

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Next week is going to be crazy at the office!…
5/26 we get off due holiday in the US
5/27 they are moving us from our current offices…

a PACKAGE arrived yesterday. It’s one of those training evaluation packagess, which pay $0.03/word, and which generally bring in anywhere between $6 and $20 for each session evaluation. This one had 5 session evaluations. I’ve already finished 2 and they were about 1,000 words (so,…

A seller asks about selling his home for a lower home value than its appraisal value. He wonders if selling for a lower home value could be illegal. A wrong home value could lead to mortgage fraud or call the appraisal into question.  

To get a VA loan you have to be a veteran. VA home loans may be the only true zero down loans at the moment. You have to meet specific requirements to qualify for a VA home loan. Another home loan option with low down payment requirements is the FHA loan.  

A consumer asks how closing a credit card will impact his credit score. The impact of closing a credit card depends on how long you have had the credit card and whether it has been paid off. 

An adult child asks who has to repay his father’s credit card debt after his father dies. When a death occurs, the person responsible for credit card debt depends on whose name was on the credit cards. After this death, it may fall to the man’s wife to repay the credit card debt.