Obama Debt Relief Initiative

WealthHow Staff Oct 27, 2018
This is an initiative by the Federal Government for providing debt relief to American citizens. This write-up tells you more...
Those who are and were under debt, must have surely heaved a sigh of relief. The reason is pretty simple―Debt Relief Initiative by former President Obama. It is meant to help people pay off their debts along with other provisions, for upping the economy as a whole.
This plan is a part of the big picture, the American Recovery and Reinvestment Act, 2009. It is commonly called the Economic Stimulus Act. What has attracted people most in this act is the opportunities it puts across about  debt relief. Thanks to the-then President Barack Obama, those reeling under a debt in the USA can think of getting free of it.

Obama Debt Relief Plan

A huge amount was pumped in by the Obama government to spruce up the economy and to help people deal with debts and rising costs of maintaining a decent lifestyle.
This plan is meant not just for individuals, it was made considering the banks and businesses which were incurring huge losses because of recession. The aspects given herein have been covered under this plan, which value around $787 billion, which was later revised to $831 billion between 2009 and 2019.

For Those with Home Loans

Homeowners have been encouraged to get their homeowner loans refinanced for decreased fix-rate interests. It is always a good option to have a loan with a low interest rate.
The scheme has enabled low income homeowners to get grants for home repairs and repairs within the house. It also includes upgradation of windows and doors, for temperature efficient homes. With these things people would save money and can pay off their debts.

For Those Under Debts

Obama debt relief and settlement initiative though seems to have been marred by controversy, there are some good aspects connected to it. For starters, if a person has over $10,000 of unsecured debt, the plan allows him to get it erased by around 60% or more.
Moreover, the good news is that there would be no negative impact on that person's credit score. That is even if that person has to file bankruptcy. All these things give the person under debt a breather as that person gets a chance to work with companies working within President Obama's credit card debt relief program.

For Students

Under the debt relief initiative by the government, students may get loans at low rates. Also, to make payments affordable, student loan repayment schedule will be decided on income levels. It is mainly for students working to repay loans.

Other Features

Some more prominent features of the initiative are $400 per person tax credit. This is being termed as making work pay credit. This debt relief program was also aimed towards increased health and education expenditure, along with huge finances for infrastructure projects and tax cuts for businesses.
A mention worthy thing in connection with debt reduction is that small business loans and grants for small business have become easily available and obtainable. For those who were and are unemployed, they were promised unemployment benefits.
All these things have led people to save money in paying for basic necessities. This has led people to repay their debts and loans, giving them some relief.
Obama debt relief grants can be applied for, if a person wants to pay off bills, mortgage, or any other thing. This settlement has become a viable option with this plan in place, and basically for those who are apprehensive about they not being able to repay, will definitely have hope under the plan.
Fundamentally, this plan strives to pump in huge finances in every aspect, so that people and businesses and organizations can be given concessions and financial assistance and tax benefits.
Although all this seems good for citizens who are looking at saving money and getting better living conditions, finance companies are not exactly happy with this, according to experts. Moreover, a concern was expressed that this huge cost can be a burden in the long run.