Debt Consolidation Programs Government Approved
Debt Consolidation Programs Government Approved
Finding Government Debt Relief and Grants: Tips and Advice
Do you feel like you’re drowning in debt? Do you have no idea how to get out of
Do you believe that going to the government is the best way to get out of debt?
Did you realize that the US government owes more than $28 trillion in debt?
That’s a lot of money. While the government does provide certain limited debt
relief programs, don’t expect the government to bail you out.
Is there any debt relief from the government?
If that’s the case, what are your options?
There are some misunderstandings about what the government can do to
help people get out of debt. In summary, the federal government offers help
programs and subsidies, but there is no such thing as a simple debt relief program
offered by the government that makes your debts vanish.
It’s critical to get control of your debt situation. In principle, any government
program will assist people who are in financial difficulty, but not everyone who is
in financial difficulty will qualify for a government debt relief program.
It’s important to remember that government debt relief isn’t a viable option for many
financial issues, particularly unsecured debt like credit card debt. It’s also a good
idea to be aware of your rights and the types of assistance that are accessible.
Learn about how the government can assist you in finding the best debt relief
option for your unique circumstances.
Debt management and government advice Government debt relief for many kinds
of debt (student, mortgage ,medicals hardship), as well as protection against debt collectors and litigation.
Do you find yourself in a financial bind?
Don’t hold your breath on a miraculous Government Debt Relief Program.
Many people are having trouble paying off their credit card debt.
Government Advice on Pre-Debt Relief
While the government does not manage its budget in the same way that a family
does, some concepts must be followed, such as budgeting, balancing your budget,
bringing in revenue, taking out manageable debt, and creating equity.
You don’t have the option of creating money, issuing a bond, or controlling interest
and inflation, for example. A government, on the other hand, that does not manage
its finances wisely would find itself insolvent.
Here are some helpful hints for dealing with debt:
1. Make a budget: Check out Bills.com Budget Guide if you need assistance
creating or maintaining a budget.
2. Balance Your Budget: If your income isn’t enough to meet your expenditures, you
may attempt to reduce costs or boost income by taking on a second job or working
3. Debt Management: If your income isn’t enough to cover your expenditures, a loan
may help you bridge the difference.
Focus on debt that will help you grow your net
worth, such as mortgages and school loans, much like the government does when it
builds infrastructure or undertakes long-term national initiatives.
You can prevent falling into debt if you manage your money, check your budget,
take out healthy loans, and build up emergency funds. Even if you are experiencing
financial difficulties and have accumulated debt, solid financial habits will always
come in useful.
Debt Relief from the Government for Various Types of Debt
There are government initiatives that may assist customers who are in debt.
Mortgages and student loans are two of the most common household obligations, so
it’s no surprise that the government has stepped in to assist in times of need.
Mortgage Debt Relief from the Government
Making Home Affordable was one of the most popular debt reduction programs for
Various foreclosure options were considered, including:
HARP Mortgage – Underwater borrowers who lost equity during the Great
Recession were able to refinance into lower interest rates and more manageable
payments with the HARP mortgage.
Over 3.4 million borrowers benefited from the
The HARP program came to an end at the conclusion of last year.
HARP was superseded by specific high loan-to-value refinancing programs by both
Fannie Mae and Freddie Mac.
The HAMP modification expired, but it allowed lenders to restructure government-
backed loans into more manageable payments. Lenders are anticipated to take up
the slack after the program ends and provide their own loan modification options.
Student Loan Debt Relief from the Government
Student loans are the most common kind of non-housing debt in the United States.
Debt has exceeded $1.55 billion as of Q4 2020. Between 2003 and
2020, the amount owed on student loans grew sevenfold, accounting for more than
37% of all non-housing debt.
Student debts may be a significant financial burden, making it difficult to save,
prepare for a down payment, or make ends meet. Currently, the majority of student
loans are federal student loans, which are often eligible for government student
debt reduction programs.
If you’re having trouble repaying your federal student
loans, speak with your loan servicer. Also, see https://studentaid.gov/h/manage-
loans for the great student aid government website.
Consider a deferral or forbearance plan if you are experiencing short-term
difficulties. Consider debt consolidation, loan extension, an income-driven Plan, or
an income-sensitive Plan if you’re having trouble making payments. Certain debt
forgiveness programs are also available.
Medical and Hardship Debt Relief from the Government
While there is no national debt relief program, several local initiatives assist
individuals in financial need.
Illness and medical expenses are one of the most
common causes of financial difficulty. Not only do individuals lose their jobs, but
medical debt is also expensive. With no other option, many individuals deplete
their funds and even incur credit card debt in order to pay their medical expenses
and get medical treatment.
A government website is available to assist with medical and other expenses. You
may find out about state and federal health insurance programs that may be able to
assist you in paying your expenses or finding other payment alternatives.
Here are some more ways where the government can help: Telephone service, home energy
bills, medical bills, prescription drug costs, and welfare or temporary assistance for
needy families are all things that need to be paid for (TANF).
On its Medlinplus website, the government also offers information and initiatives
regarding medical debt.” An ounce of prevention is worth a pound of cure,” as the
While most of the information is irrelevant to previous debt,
equipping oneself with knowledge may help you avoid some medical debt.
Protection against Debt and Debt Collectors by the Government
Legal safeguards are one of the most important aspects of government debt
The Fair Debt Collection Practices Act (FDCPA), for example,
places restrictions on debt collectors activities. If you are behind on your
payments, the last thing you want to deal with is debt collection harassment.
The FDCPA forbids debt collectors from engaging in certain behaviors, such as using
abusive or threatening language or making threats of arrest.
The government also provides debt relief via collection laws and statutes of
limitations. These provide you with legal protection in the event of a lawsuit and a
possible verdict. These rules vary by state and pertain to different types of debt and
The government also provides debt relief via a court-approved bankruptcy, either a
Chapter 7 liquidation or a Chapter 13 court-supervised repayment plan. Bankruptcy
is usually seen as a last-resort option, and only a small percentage of individuals
are eligible for Chapter 7 or Chapter 13 bankruptcy.
Good News: There Are Alternatives to Government Debt Relief
For many individuals who are in debt, the good news is that there are a variety of
debt relief alternatives available that do not involve the government. There are
options for both individuals in excellent financial standing and those who are
suffering with credit card debt.
Anyone with excellent credit and a solid financial position should review their
budget, assets, and credit. Perhaps a debt consolidation loan or a more aggressive
debt repayment plan can address your issues.
Consider a debt settlement program if you are having trouble making your
minimum payments and want to concentrate on paying off your debt rather than
your credit. Fortunately, the government regulates the business, so you’ll never
have to pay anything up front.