Government debt relief programs; exist?
Yes, there are government debt relief programs. However, federal debt relief programs are only available for student loans.
Federal student loan relief programs are available at StudentLoans.Gov.
The key to getting a low monthly payment and maximum loan forgiveness amount is to qualify for an income-driven repayment plan.
The Pay As You Earn plan is a popular federal program that offers a low monthly payment and loan forgiveness.
The lower a person’s income and the larger their family size, the lower their Consolidated Monthly Payment.
Students need to recertify Pay As You Earn and all income-based payment plans each year, so if a person’s income changes, so will their payment.
AFSLR Certified Student Loan Expert Wesley Hendrickson stated; “Don’t forget to recertify or you may lose your eligibility for loan forgiveness, and your payment may skyrocket. This is the most common mistake I see students make. The next thing you know, your wages will be garnished and the credit the marker is thrown”.
For credit card relief, there are no government programs.. Credit card relief options available through third party companies are available. Make sure the company you choose is certified by IAPDA and highly rated by the Better Business Bureau.
A person can also work directly with their credit card company, but the savings will be minimal compared to what a person can save with a debt relief program. Your credit card company may temporarily lower your payments and interest, but only temporarily.
Most debt relief companies across the country offer debt settlement services, but this program has negative consequences.
A person’s credit score can be negatively affected and credit card lawsuits can occur while in a debt settlement program. In only about 2% of all cases, credit card companies will sue a person while they are in a debt settlement program. While this is not a large percentage of lawsuits that do happen, it is something to be aware of and prepared for.
Before joining a debt settlement program, make sure you understand ALL of the potential negative consequences. Do your research and make sure the company helping you is transparent and has reputable credentials.
How debt validation works
Debt validation can allow a person to legally stop paying a debt and get out of debt without paying a penny to the debt collection company and only having to pay the debt relief company’s fees.
Debt relief programs that improve your credit score
No debt relief program will improve your credit score unless you get a debt relief loan to pay off your credit cards.
Since all plans can have an adverse effect on credit scores; Debt validation comes with credit repair, with the goal of completely removing debt and associated negative marks from customers’ credit reports at the end of the program.
Rick Sorrentino, IAPDA Accredited Counselor, advises consumers; “If you can afford at least the minimum monthly payments, try to find another way to resolve your debt besides using debt settlement or debt validation. These programs should only be used as a last resort, to prevent a person from having to file for bankruptcy .”
Consumers can call 866-376-9846 and speak with an IAPDA-certified counselor to learn about their credit card relief options.
