You may have seen ads announcing ‘special government programs’ to erase your debt—in your social media feeds, magazines and on TV. And, while they aren’t completely false, they may be misleading. There are no government debt relief programs for credit card debt, but you may find federal assistance for other types of debt.
Let’s go over several government debt assistance programs and other private options.
Federal Debt Assistance
People may receive federal assistance for student loan debt, Veterans Affairs (VA) home loan debt and certain types of medical debt.
Student Loan Debt Forgiveness
There are programs that may forgive some student loan debt for people who get certain types of jobs after they graduate—like teaching, medical and nonprofit work. After working for a certain amount of time (typically 10 years) and making regular monthly payments on time, they may have the balance of what they owe on their student loan cleared.
VA Home Loan Debt Assistance
Veterans that have VA-sponsored home loans may apply for assistance with late mortgage payments. If you’re a veteran and you’re having difficulty making your mortgage payment, you can contact your loan servicer to discuss options.
Medical Debt Assistance
Medicaid, Medicare, the Children’s Health Insurance Program (CHIP) and the Affordable Care Act are government health insurance programs that can provide help for medical expenses.
Charitable Organizations
Certain state and local charities also offer debt assistance programs, and there are non-profit credit counseling agencies that may provide debt management assistance.
Private Debt Relief Programs
Debt consolidation, credit card balance transfers and debt settlements are options you may turn to if you have credit card debt.
- Debt consolidation is a term for when you restructure—or consolidate—your multiple credit accounts so that you’re only responsible for making one monthly payment. This shifts your outstanding balances into a debt consolidation loan, which may be less expensive to repay and easier to manage.
- Credit card balance transfers allow you to move your outstanding credit card balances onto a new card—typically with low or no interest for an amount of time determined by the card issuer. If you pay off your new balance within that time, you will save money on interest. However, you should be careful with credit card balance transfers because interest rates may be very high if you don’t pay off the transferred balance in full before that window closes.
- Debt settlement is the process of resolving the amount of outstanding unsecured debt you owe by hiring a company to negotiate a lower balance with your creditors. It can help with unsecured debt, such as credit card bills, medical bills and personal loans.
Questions? We’re here to help.
If you have questions about government debt assistance or would like a free, no-obligation debt relief consultation, visit us at nationaldebtrelief.com or give us a call at 800-300-9550. We’re here to help.
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