Americans paid off $21.6 billion in credit card debt and other consumer loans in July. That is the biggest decline in consumer debt since 1943, when the Federal Reserve started keeping track. The Takeaway's business contributor, Louise Story, a finance reporter for the New York Times, says the economy will fundamentally change if Americans take on a new attitude about spending money they don’t have.

Roughly 50 percent of all college graduates leave school with what can be years' of student loan debt. But relief is in sight. On July 1, a new income-based repayment plan goes into effect. For a look at who is eligible for this financial lifeline, The Takeaway is joined by personal finance expert Beth Kobliner. She is the author of The New York Times best-seller "Get a Financial Life." Also joining the show are two people who are saddled with student loan debt. Austin Light is a journalist who shares over $100,000 of debt with his wife. He joins us from Charlotte, North Carolina. Colleen Hansford joins The Takeaway form Colorado Springs. As a single mother of three, she is struggling to scale down the $66,000 in debt that she’s incurred.

Go to the Income Based Repayment site IBRinfo to get more information about this repayment plan.

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Today we’re kicking off our series “Pomp in these Circumstances.” Over the course of this week we’ll be looking at the challenges that high school and college graduates are facing in these difficult economic times. This year 3.2 million students are expected to graduate from high school and of those, roughly 70% will go on to get a college education. But with two-thirds of college graduates carrying debt—and the average student loan debt topping $20,000 dollars— is a college degree worth it? What does it get you in today’s global economy? Joining us to talk about the value of a college education is career counselor and higher-education policy writer, Marty Nemko.

Desperate to not be deadbeats, hundreds of thousands of consumers are turning to debt settlement agencies to escape crushing piles of bills. Everyone has seen the ads: you call, they help, and eventually you are a debt free. But a report in today's New York Times says many consumers have begun to complain that those companies collect large fees and don't do much to help. Unfortunately, it seems the typical experience according to consumers is that a settlement company collects a large fee, often 15 percent of the total debt, and accomplishes little or nothing on the consumer’s behalf. Needless to say, state attorneys general are being flooded with complaints about settlement companies. The Takeaway talks with New York Times business reporter David Streitfeld for more on the story.

For more, read David Streitfeld's article, Debt Settlers Offer Promises but Little Help

Ads like this one from In Charge Debt Solutions offer consumers hope that they can help resolve disputes with debt colletors:

Today we’re kicking off our series, “The Color of Money,” in an effort to examine how the economic downturn is affecting minorities. We’re starting the conversation with a look at modern day debtors’ prison—a 19th century relic that is alive and well in parts of 21st century America. While imprisonment for debt was officially abolished in the 1800s, for Edwina Nowlin, it is a harsh reality. Her teenage son was kept in prison until she could come up with the funds to pay the court-ordered $104/month fee. When she couldn't pay, she was sent to jail for 30 days. It took a lawsuit by the ACLU of Michigan to get her out.

With unemployment rates higher among African Americans and Hispanics, and the median income about $20,000 lower than it is for whites, these groups run a greater risk of falling into debt and bearing the consequences. Joining us to talk about these penalties and the rise of debtors' prisons is Stephen Bright. He’s the president and senior counsel of the Southern Center for Human Rights. He also teaches at Yale and Georgetown Law School .

Has a business ever offered you money to just go away? If you’re an American Express customer, you may know what we’re talking about. Credit card companies are ditching their customers—offering them cash to take a hike. Will they follow on the heels of mortgage companies and be the next to go under? The Takeaway talks to Christian Weller, Senior Fellow at the Center for American Progress and an associate professor of public policy at the University of Massachusetts, Boston.

In every economic downturn there are industries that prove to be recession proof. And aside from business models that avoid losses in profits, are the ones that do better in tough economic times. Take debt collection work and the actual people who do voice over work for debt collection companies; an occupation that is growing.

Joining The Takeaway are two debt collection voice over artists who use their pipes to get debtors to fork over their money. Donna Mack is a freelance voice over artist and Gerry Burke works for CSG systems.

President Obama is making a priority of slashing the national debt in the coming years and he says some of the greatest savings come from pulling troops out of Iraq. But just how much money can be saved by a troop withdrawal? To answer that question, we turn to Linda Bilmes, Harvard professor of public finance and co-author with Joseph Stiglitz of the book The 3 Trillion Dollar War: The True Cost of the Iraq Conflict and a new book The People Factor: Strengthening America by Investing in Public Service.

Congress is currently debating the possibility of bankruptcy reform, a measure that may come too late to save companies such as GM, but what about the little guy who is being crushed by personal debt? Does the legal insulation meant to protect the American worker still function in this economic climate? Does filing for bankruptcy in our current economy offer relief? Alvin Hall joins Adaora and Todd with some advice that might make you pause before considering declaring bankruptcy.

The American economic boom couldn't have happened without China's willingness to buy up American debt. While the American economy has hit a road bump (or maybe a pothole), China has been able to avoid the same market turmoil. Until now. With a downturn in its own economy, China isn't interested in acquiring any more American debt and that is having a profound impact on our ability to borrow. New York Times' reporter Keith Bradsher is following this story in Hong Kong.

Does falling family debt mean a stagnant economy?