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What Government Debt Relief Programs Are Out There?



What Government Debt Relief Programs Are Out There

Photo by Karolina Grabowska from Pexels

You have a boat load of debt and are in desperate need of help. You see various ads touting government debt relief programs, but aren’t sure whether the initiatives are legit, what they might entail, or whether they fit your situation. The following is some info about such offerings that you may find helpful.

Do Government Debt Relief Programs Exist?

The answer is yes. In fact, there are several government debt relief programs, including consolidation programs, although many people are unaware of them. What’s listed below are just a few:

Internal Revenue Service Fresh Start Program

If you have overwhelming tax obligations, the Internal Revenue Service has established what’s called a Fresh Start Program, which makes it easier to repay your government debt. A portion of the program facilitates a government debt consolidation program called an Installment Agreement for those who seek to repay multiple years of back taxes. Another portion involves use of the government’s tax debt settlement initiative — Offer in Compromise. It’s worth checking out these initiatives if you need help or even a clean financial slate.

Income-Based Student Loan Repayment

Among government debt relief programs are those that can lower your monthly student loan debt. Terms and revised payments are determined by your monthly income and family size. By ensuring that student loan payments comprise a small percentage of your income, your payments become more affordable. If you have a student loan, such programs could really come in handy.

Student Loan Disability Discharge

A long-term disability can qualify you for what’s called a Total and Permanent Disability Discharge. You’ll have to clear some hurdles to become eligible, but if you can do so, you could erase your whole student loan balance. Wouldn’t that be something?

Public Service Loan Forgiveness

In many cases, public service loan forgiveness is available to firefighters or first responders, or to nurses or emergency medical technicians who work for a public hospital. You’re required to follow all the steps over a decade, but by doing so your outstanding student loan balance may be forgiven. You may not have even heard of this program – many such government efforts are not well-publicized — but now you know.

Alas, There Are No Government Debt Consolidation programs

Would that it did, but the federal government does not provide relief from credit card debt. There is not a federal program that helps with credit card balances. For that, you’ll need an agency such as Freedom Debt Relief, which helps consumers settle their debts for a fraction of what’s owed through its debt settlement program.

You also can get assistance from nonprofit credit counseling outfits that can work with you to ease your debt woes. Such agencies, which have trained professionals, offer their services for free or for a nominal fee.

Finding Relief for Your Debt Needs

Pinpointing programs for which you can qualify is a first step toward making a serious plan to erase your debt. A credit counselor can help guide you. Such counselors offer a host of services, including helping you with money management or creating a plan to help you erase debt. Sometimes, they can negotiate lower interest rates or monthly payments.

Know you know what government debt relief programs are out there. If they don’t apply to your situation, contact a debt relief company or a credit counselor who can help you get back on your feet. You’re a phone call away from a life of more financial freedom – and less debt.

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