Government Credit Card Debt Relief Program

Kundan Pandey Oct 21, 2018
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Being in debt is nightmarish, especially if your car and home are at stake. Government credit card debt relief program can be a rescue in times of such financial failure. Let us discuss possible strategies to tackle credit card debts.
Being neck deep in debt is a nightmare especially if your car and home are at stake. The debt relief programs can be a rescue for you in such financial failure. Without spending some hefty amount of dollars, it is possible for you to get rid of your credit card debt. Here we will discuss possible strategies to tackle your credit card debts.
On August 2, 2011 President Obama signed The Budget Control Act of 2011, thereby preventing the United States debt-ceiling crisis, a financial chaos that was imminent on August 3, 2011, in the wake of rising government debts.
The path to recovery after the 2008 year financial crisis has been slow and often marked by signs of a deepening crisis. With an average citizen debt in the US approximately equaling US$47,000, it is easy to guess that debt settlement issues are perhaps the most sought after financial knowledge these days.
In a desperate need to find a solution of the mounting debts, uninformed citizens have been duped by false claims of numerous debt management companies. In this regard, it is essential to understand the suggestions given to debtors by The Federal Trade Commission (FTC), the nation's consumer protection agency.

Debt Consolidation Program

At the FTC, we strive every day to make sure America's middle class families get straight deals for their dollars. This rule will stop companies who offer consumers false promises of reducing credit card debts by half or more in exchange for large, up-front fees. - Jon Leibowitz, Chairman, FTC, on the passing of 'Amendments to Telemarketing Sales Rule'.
The ruling of FTC to pass an amendment safeguarding citizens regarding debt settlement frauds is commendable. Numerous credit card debt settlement firms have mushroomed in the recent years making it difficult for debtors to choose a legitimate agency.
By touting their programs as 'new government debt relief option', fake debt settlement companies have duped people by charging high advance fees for debt settlement. Individuals planning to repay their debts must be careful while choosing a debt settlement company. They must not be influenced by fake firms who allure them for an easy solution of their debt.
There are some simple strategies to avoid fake debt management firms besides getting the debt problem solved. Some tips for doing so are as follows:
  • Firstly, customers must be persistent in asking their credit card company for some rebate and time. If the company gives them more time for repaying the debts, they must opt for a proper credit card debt settlement counseling. In fact, many companies who want to resolve their customer's debt matters, offer help in the form of counseling and negotiations.
  • In case, even if the aforementioned option doesn't work, then this information is available in abundance on the government websites. To avail the benefits of government relief grants, you've got to firstly visit the official websites of the United States Federal Government.
  • In the search box of federal websites, you can type 'debt relief' and learn extensively about government aided agencies that have expertise in debt relief programs.
  • Even visiting the website of the Federal Trade Commission (FTC) will help you in knowing about legitimate agencies.
  • In case, you have any queries or you need any sort of help with respect to your credit card debt relief, you will find help on the government websites.
  • Generally, you must be a citizen of US and must have crossed 18 years of age for getting a government approval of your debt situation.
  • It has to be remembered that you will be able to find information about several non-profit debt management companies on government websites that will assist you in knowing about types of government grants available to citizens by the US government.
  • Once you've are aware of an agency that is going to help you in obtaining government relief grants, you're expected to submit an official application.
  • Follow all instructions of the concerned firm in filling the form properly, as that will help you to increase your chances of getting approval for debt relief.
  • When applying for a debt relief grant, you've got to submit all relevant financial documents so that you have no problem in getting approval for your debt payoff. Some documents may include bank statements, pay slips and any other similar papers that can act as a testimony to the fact that you're not in a stable financial condition to repay your debt.

Credit Card Debt Consolidation Loans Program

These programs belong to a very specific group of loans offered through various government schemes. Their objective is to help individuals in multiple debts to pay all debts together by combining them in a manageable single payment option. By this, the government ensures that the monthly amount a debtor has to pay, is reduced to a manageable amount.
Several consolidated loan programs decrease loan interest rates and hence the total amount to pay over the period of loan is distributed in a few, smaller installments.
The good news for those in credit card debts is that such consolidated loan programs can be of immense help in providing credit card debt relief. However, doing so is not going to be a cake walk for debtors because it will require tremendous discipline from the debtor's part.
The government credit card debt settlement programs through consolidated loans are not a very exciting idea for credit card relief, if a debtor is not disciplined in managing his or her monthly expenses. After debt consolidation, the average monthly credit card bill is lessened to some manageable extent and this helps in managing a person's finances.
However, if the debtor doesn't realize the value of frugality and continues to use the credit cards, it may lead to more debt. Hence, make sure that if you're trying to get credit card relief through consolidated loans, you've closed your credit card accounts.
Almost all banks either close credit card accounts or encourage debtors to do so, once the debtors are aiming to pay off their credit card bills by consolidated loans. This step ensures that debtors cannot reacquire balances, spend them and again be caught in the vicious cycle of being in debt.
As conclusion, there is no magical solution to your debt situation. Your debts won't disappear in a day or two. It needs consistent action and discipline. There are several government programs to help debtors. It is advisable to check out with your state Attorney General and local consumer group agencies if the debt company you have chosen is legal.
Law enforcement agencies generally have information about registered debt management companies and they can help you out in a tracking the background of the firm's records. So, if your credit card debt problem has been giving you sleepless nights, it is time to fight back and get rid of it.
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