In simple terms, debt is an agreement to live beyond your financial means, with a long-term goal of its relinquishment. It’s not so much something you choose, but rather an inevitability of modern life and the engagement with education, housing, essential services, and lifestyle choices. If your personal debt becomes unmanageable, there are several avenues of assistance to explore. The government provides a raft of debt alleviation and consolidation programs that cater to different circumstances. Let’s examine what federal debt relief programs do and when they may, and may not, be applicable to your monies owed.
Governmental Debt Aid
Recent debt demographics expose the extent of debt amongst the American public; and how it measures up against income, education levels, and other socio-economic factors. In general, wealthier people have higher levels of debt, congruent with their increased repayment capabilities. With the continued rise in living costs, people on lower incomes and the younger generations; form the majority of those experiencing debt repayment stress.
Accordingly, the current availability of federal debt relief programs targets the less-advantaged and younger demographics. The Fresh Start Program, for example, provides assistance to people who have fallen behind on their taxes, perhaps on multiple returns. It does so by offering them an installment payment plan to relieve financial pressure in the short-term, or via an Offer in
Compromise, where an agreed sum is less than the total amount of taxes owed. There also programs aimed at reducing student loan payments by means-testing monthly repayment rates. Loan forgiveness is available under certain exceptional circumstances; such as student disability, and for nurses or EMTs working in public hospitals, and firefighters and first responders.
Non-Governmental Debt Aid
Credit cards are one major area of financial borrowing in which federal debt relief programs do not provide any assistance. Credit cards also represent one of the main types of personal debt within the community. If you find yourself struggling to cope with credit card repayments, there is alternative help at hand. Credit counseling agencies will engage you with a certified debt consultant to assess your borrowing difficulties and seek a resolution.
They may tailor a debt repayment plan, which increases your monthly repayments to have you debt-free sooner. Your consultant might also negotiate with the credit company on your behalf to reduce the total amount of monies owed.
Agency debt relief is not restricted to those suffering from outstanding credit card debt but also applies to people who may have unpaid medical bills or other types of personal loans that are unsecured by collateral. Aside from credit counseling, you may choose to use a debt settlement company, such as Freedom Debt Relief. Debt settlement companies charge a fee to secure an agreement with your creditors. In most cases you should be able to settle your debt for a lesser amount.
Where to access credit counseling
Credit counseling services are generally free or affordably priced. Your credit card issuer may provide the details of counseling services. You can also search for them via not-for-profit agencies and religious organizations. Once you’ve located an agency, ensure that they’re accredited by either the National Foundation for Credit Counseling or the Financial Credit Association of America.
There are government websites providing more information and resources on the topic. These websites are also your portal of call for information on other special category provisions. For example, if you’re an active member of the military services; you might qualify for special debt reductions on credit card and mortgage interest rates; and protection from evictions and other debt-triggered events.
When it comes to engaging with the particulars of What Federal Debt Relief Programs Do and whether they offer a scheme that may be suitable to your particular circumstances, the sooner you begin your inquiries the better. Rest assured that if the federal debt relief programs can’t assist yo; there are debt settlement companies poised to do so.