Debt consolidation programs
Many people don’t realize that the federal government has debt assistance programs. While most of these programs are tailored for specific situations, there might be something that could be of assistance to you. Here are some ways to get debt relief from the government.
Internal Revenue Service initiative
You might consider the IRS’s Fresh Start program, which makes it easier to pay down tax debt. Installment Agreement is a program that consolidates government debt and allows you to pay off tax arrears for years. Fresh Start also allows you to use Offer in Compromise (the Fed’s tax debt settlement)
Student loan disability release
The government has an interest in decreasing student loan debt. Because of this, the government has a vested interest in reducing student loan debt.
If you have a long-term disability, you may be eligible for total and permanent disability. You could be eligible to have your student loan debt paid in full if you meet the criteria. That would be awesome, wouldn’t it?
Income-based student loans
There are many federal programs that can reduce your monthly student loan payments, depending on how much you make and the size of your household. Your goal is to reduce your monthly student loan payments by making sure that they only cover a portion of your income.
Remission of public service loans
The best programs for government debt relief are those that offer a discount on utility loans. This pardon may be of benefit to paramedics, firefighters, and nurses working in a public hospital. You must be able walk for at least 10 years. Your student loan balance may be forgiven if you are able to do so.
Federal assistance with credit cards
These are the areas where you’ll encounter obstacles. There is no federal assistance for plastic. The government can’t forgive you and help you to pay off your credit card debts. You can file bankruptcy if you are in deep debt. This would be a last resort as you might have to lose some assets. Debt settlement is a better option. Although it’s not related to the federal government, it could help you avoid bankruptcy. Your credit report will remain on your record for as long as 10 years. Freedom Debt Relief is a reliable and well-established company.
The Service Members Civil Relief Act assists military personnel with financial matters, including protection from deportation. This law could allow you to qualify for a lower interest on your mortgage and credit card balances.
Government Debt Relief Tips Before you Get in Trouble
The government has suggestions for you to avoid or manage debt. These include budgeting and keeping, budget balancing, and choosing the right debt. If you don’t have enough money to pay your bills, then a loan might be the right option.
Also, you should create an emergency fund to avoid having to borrow money every time there’s an unexpected expense such as a car repair or a trip emergency.
You may be able get help if you are able to learn how to use government debt relief programs. Take a look at these resources to learn more.