Video: The Best and Worst Ways to Destroy Debt

In this video, Money TalksNews provides some tips on eliminating debt.

What other tips do you have to handling debt?

Anti-Foreclosure Program Extended

According to Reuters, the Home Affordable Modification Program or HAMP has been extended for two additional years. The program, which was introduced in 2009 as a tool to help struggling borrowers keep their homes, was set to expire at the end of 2013. It is reported that of the $29.9 billion allocated for the program, only $5.2 billion has been spent by the Treasury Department. Under the program, lenders and servicers are paid to rewrite loan terms for borrowers who can't make their current mortgage payments.

Do you support programs such as HAMP as a method to assist borrowers who are behind on their mortgage payments?

1 in 4 Consumers Finds an Error in Credit Report

A recent study conducted by the Federal Trade Commission revealed that 1 in 4 consumers has an error on his or her credit report. Consumers are entitled to one free credit report from each of the major credit agencies annually. According to Komonews.com, the study also revealed that 5 percent of consumers found errors that increased their payments on financial products like mortgages and car loans. So far, the Consumer Financial Protection Bureau has not taken any public action against the credit agencies. Consumers who find errors in their credit report can file a complaint with the CFPB and the offending agencies will have 15 days to respond or resolve the discrepancies.

When was the last time you checked your credit report for errors?

Banks to Pay $8.5 Billion in Foreclosure Settlement Deal

A recent article by New America Media, reveals that 10 of the nation's largest banks will be sending checks to homeowners who were in foreclosure during the years of 2009 and 2010. This news comes as part of a settlement reached between the banks, the Federal Reserve Board and the Office of the Comptroller of Currency.  $3.3 billion of the settlement monies will be sent to homeowners to compensate for errors that may have occurred during their foreclosure. Another $5.2 billion will be set aside to provide consumers with other forms of relief such as loan modifications.

The proposed payouts will vary depending upon the significance of the errors and the specific characteristics of the borrower's loan.

This settlement comes as a previous initiative to provide homeowners with an independent review of their mortgages expires. The program was criticized for its low rate of participation, lack of advertisement in areas hit the hardest by the foreclosure crisis, and alleged bias of reviewers.

Details about the current plan are scheduled to be released to borrowers in March.

Do you think this payoff will provide just compensation for borrowers?