When dealing with the burden of debt, it’s difficult to know where you can turn. There are so many options and companies out there claiming they can help you, but you never know who you can trust or what’s best for your financial situation. There’s even government debt relief, but is that really an option? Keep reading to find out more about government debt relief programs and if they are suitable for you.
What is a Government Help Scheme?
The good news is government debt relief is a thing, but it’s important to understand whether the type of debt you’re dealing with qualifies. While personal grants and assistance programs are available, there’s no program that’s going to make all your debt disappear with the push of a button. But what government debt relief programs are there?
Government debt relief programs are primarily targeted at those going through financial hardship through no fault of their own. While not everyone will qualify, it’s important to do your research to see if you are eligible. The government programs available can assist with some debts, but not all. Debt relief by the government can help with the following financial situations:
- Debt Relief for Medical Hardship – Unfortunately there are no government debt relief programs for personal loans, but there are options out there for those dealing with medical hardship. Unfortunately, one of the biggest reasons people fall into debt in the United States is due to medical bills and illness. If you qualify for financial assistance, the government can help with this burden. Medicaid can help those on low income, with government agencies also existing that can help with prescription drug costs if needed.
- Debt Relief for Student Loans – While many people across the United States have been promised the world once receiving a financial education, the only definite thing people receive after a college education are student loans unless they’re lucky enough to have college paid for! Student loans can prevent people from being able to own a home, save up for their dream car and more. The good news is that there is help available for federal student loans if you’re going through a financial hardship. Loan servicers can defer payments or even reduce your monthly payment to zero depending on your financial situation.
- Bankruptcy – Bankruptcy is seen as a last resort for many people dealing with financial hardship and debt. People who go down the bankruptcy route receive a discharge which is a court order noting they don’t have to pay back certain debts. While this sounds too good to be true, it’s important to understand that bankruptcy can seriously impact your future. Bankruptcy stays on credit reports for 10 years, making it difficult to buy a home, rent a car or get credit. While 10 years doesn’t seem like a long amount of time, it’s a long time to deal with that type of situation. Despite all of this, it does offer people a much-needed fresh start if they have n where else to turn.
- Protection Against Debt Collectors – When dealing with debt, when one of the most stressful elements are aggressive collectors going after you. The good news is that the government can help limit how far debt collectors can go. By law, debt collectors are not allowed to use abusive or threatening language and must instead act with integrity. If you find yourself being harassed by debt collectors using cruel tactics, it’s important to seek help as this is considered unlawful.
Get Help Today
While the government can’t help with personal loans or credit card debt, government debt relief is a thing when it comes to financial hardships such as government student loans and medical debt.