The government does not participate in any debt consolidation program. The government does provide grants to non-profit credit counseling agencies that work with consumers to resolve problems related to credit card debt. Much of federal consumer aid against COVID-19 has expired, and state aid may not be enough for some people. If you're struggling to make credit card payments, need help, or are looking for financial education to help with budgeting and financial resources, a nonprofit credit counselor is a good option.
Managing credit problems is a challenge at best, especially for low-income households and especially when it comes to debilitating credit card debt. They would help reduce the monthly cost that could help allocate funds to savings and would provide you with enough room to resolve federal and state debt. Generally, any government program will help people with financial difficulties, although not everyone with financial difficulties will qualify for a government debt relief program. Credit card debt forgiveness: offered by non-profit credit counseling agencies with the goal of paying less than you owe.
This includes the Fair Debt Collection Practices Act (FDCPA), which limits the actions of debt collectors. Without any resources, many people drain their savings and even accumulate credit card debt to pay their medical bills and get medical care. There is no guarantee that creditors will accept a settlement, and debt settlement companies tend to charge high fees. A final area in which the government offers debt relief is through a court-approved bankruptcy, either a Chapter 7 liquidation or a Chapter 13 judicial repayment plan.
If you're struggling to pay off loan and credit card debts, you might be curious about government debt relief programs. If you plan your finances, control your budget, take out healthy debts, accumulate savings for emergencies, and that way, you can avoid getting into debt problems. While it's true that there are some limited government debt relief programs, don't count on the government to bail you out. This is also known as the under-total balance program and is only offered by some credit counseling agencies, including InCharge Debt Solutions.
With that amount of debt and potentially high interest rates on loans and credit cards, your balances can increase over time and make it difficult to pay them off.