It has been something of a long-running joke: “I’m from the government, and I’m here to help you.” But really, it’s not so far-fetched. You’ve heard about government efforts to assist with, say, student loans or taxes. But are government debt relief programs real? They sure are. Here’s more about them.
Internal Revenue Service
If you’re behind on your taxes, doing nothing is neither a wise nor a successful strategy. In fact, ignoring your problem will assuredly worsen it. But contrary to what you may think, the IRS would rather work with you than not. Enter the Fresh Start Program, a host of rule modifications that facilitate repaying governmental debt. Part of Fresh Start promotes the use of a federal debt consolidation program called an Installment Agreement. Fresh Start also makes it easier to use what’s called an Offer in Compromise, which is the government’s tax debt settlement program.
Student Loan Repayment – Income
This is a sticky area since student loan debt has reached a whopping $1.4 trillion dollars. Yes, “t” as in trillion. Why would the government care about student loan debt? Well, because such debt impedes the ability to buy houses, for example. That inability affects the economy. To remediate that, the federal government has multiple programs that can lower your payments, depending on your monthly income and family size. The aim is to make your student loan payments more manageable so that you can continue to contribute to the economy – and therefore, society.
Student Loan Repayment – Disability Discharge
Individuals who are living with a long-term disability may be eligible for what’s called a Total and Permanent Discharge. There are a host of conditions that must first be met, but if you can meet them, your whole student loan balance could be forgiven. It’s worth looking into.
Student Loan Repayment – Public Service
Government debt relief programs also include public student loan forgiveness for nurses or emergency technicians who are employed at a public hospital, or for first responders or firefighters. You’ve got to follow the program for a decade, however, after which your remaining student loan balance could be totally forgiven.
What About Help with Credit Cards?
Well, you’re kind of out of luck there, as far as governmental help. Would that there was a federal program that lets you off the hook for your balances, or even reduces them. You may, however, want to explore credit counseling to help with your plastic or other unsecured debt. Such agencies are supported by card issuer grants to help customers get back on their feet after experiencing financial problems.
If you are overwhelmed with unsecured debt and see no way to pay it off within five years even if spending is drastically cut, you may want to pursue debt settlement. That financial strategy calls for you to hire a company such as Freedom Debt Relief to negotiate with your creditors to see if they’ll accept less than what you owe to “settle” your debt with a one-time payment in full. If negotiations are successful, you get to avoid bankruptcy — which would live on your credit report for up to 10 years — and your creditors get something rather than nothing.
Are government debt relief programs real? Totally. Can they help you? Of course, that depends on your situation. Even if they can’t, you have other options to help you deal with your debt, including credit counselling and debt settlement.
Make some moves today toward financial solvency. With time, patience and effort, you can get to where you want to be.