How to use public debt relief programs
A lot of people don’t know them, but the federal government offers debt assistance programs. Granted, most of these efforts are designed for very specific situations and scenarios, but there may be something available that can be of benefit to you. Here’s how to use government debt relief programs.
Internal Revenue Service initiative
If debilitating tax debt is your problem, you might want to check out the IRS’s Fresh Start program – rule changes that eliminate the difficulty of paying down public debt. Part of this program facilitates the use of the Installment Agreement, a government debt consolidation program that allows you to pay off years of tax arrears. Another part of Fresh Start helps you use Offer in Compromise, the Fed’s tax debt settlement program.
Student loan disability release
The government has a vested interest in a decline student loan debt burden. After all, if you’re mired in such debt, you can’t make big purchases like a house, a disability that can hurt the economy.
Now, if you are suffering from a long term disability, that could give you the right to what is called total and permanent disability. If you qualify, you could potentially get your student loan balance paid off in full. Wouldn’t that be great?
Income-based student loan repayment
There are several federal programs that could reduce your monthly student loan payment, depending on your monthly take-home pay and the size of your family. The goal is to make your student loan payments more manageable by making sure they only cover a small portion of your income.
Public service loan remission
From best government debt relief programs are the ones that offer a utility loan discount. First responders and firefighters, or paramedics and nurses who are employed by a public hospital, may benefit from such a pardon. However, you need to be able to hang on for 10 years of walking. If you can, your student loan balance could very well be written off.
Federal help with credit cards
This is where you will find obstacles, for there are no federal aid for plastic, in itself. The government cannot forgive you or help you pay off those pesky credit card obligations. If you have crushing debts, however, you can file for bankruptcy, which would be an act of last resort since you may have to give up some assets. A better idea may be debt settlement, which is unrelated to the federal government, but could help you avoid bankruptcy, which remains on your credit for up to 10 years. A credible and established company like Freedom Debt Relief.
However, if you’re in the military, the Service Members Civil Relief Act helps serving military members deal with financial issues, including deportation protection. With this law, you could qualify for a lower interest rate on mortgages and credit card balances.
Government Debt Relief Tips Before You Get In Trouble
The government offers suggestions to help you avoid or manage your debt, including budgeting and keeping, balancing your budget, and choosing your debt wisely. With the latter, if you don’t have enough income to cover your expenses, then a loan may be what you need to help you overcome the bump.
You should also set up an emergency fund so that you don’t have to take out plastic every time there is an unforeseen expense like a car repair or an emergency trip.
Now that you know how to use government debt relief programs, you may very well be able to get help, depending on your situation. Dive into these efforts to see what can be done for you.