Using Debt To Pay Off Debt In Chicago
Description
Form popularity
FAQ
Nothing is simple about Chicago's debt, so it is perhaps not surprising that traditional municipal bonds issued by the city are not the main source of its woes. The lion's share of Chicago's burden is its pension debt, totaling $34 billion, with another $2 billion for retiree health benefits.
Chicago's Out-of-Whack Budget Officials are staring into a financial abyss after hitting the so-called “fiscal cliff,” with Chicago's federal COVID-19 relief funds exhausted and tax revenues lagging after a period of high inflation.
That means a lender cannot pursue you through legal action to recoup a debt after a maximum amount of time has passed. In Illinois, that limit is ten years for a loan with a written contract or agreement and five years for any borrowing without a formal document, including credit card balances.
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
For generations, by statute, Chicago was allowed to underfund the pensions. That has created a huge amount of debt owed to the pension systems that compounds interest annually. The big jump in unfunded liability occurred between 2007 and 2020: $22.6 billion.
This is mostly due to lower spending for the COVID-19 pandemic which made up over half of all government funding in 2022. Though higher federal and state funds not related to COVID-19 have increased, this has not offset the decline in pandemic funding.
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
Individuals are eligible for debt relief if they meet the following criteria: Illinois residents. Household income at or below 400% of federal poverty level. (For 2024, this amounts to an annual income of up to $60,240 for a one-person household and up to $124,800 for a family of four)
Individuals are eligible for debt relief if they meet the following criteria: Illinois residents. Household income at or below 400% of federal poverty level. (For 2024, this amounts to an annual income of up to $60,240 for a one-person household and up to $124,800 for a family of four)
