Trouble Paying Credit Cards
If you have seen a reduction in pay due to COVID-19 and are struggling to make your credit card or loan payments, contact your credit card company right away. Explain your situation and ask about hardship programs that may be available. Regulatory agencies have encouraged financial institutions to work with customers impacted by the coronavirus.
A credit counselor may able to assist you with your debt problems. Contact one near you.
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Good News: Alternatives To Government Debt Relief Options
The good news for many people in debt is that there are a number of debt relief options that dont include the government. There are solutions for people in good financial shape and for those in a financial hardship and struggling with credit card debt.
Anyone with a good financial situation and good credit should look at their budget, assets, and credit. Perhaps paying off debt more aggressively or taking out a debt consolidation loan will solve your problems.
However, if you are struggling to make your minimum payments, and want to focus on paying off your debt and not your credit, then consider a debt settlement program. Fortunately, the industry is regulated by the government, so you never have to make any upfront payments. Private industry, with firms such as BIlls.com sister company Freedom Debt Relief, now offer you debt relief in cases where the government cannot help.
Need Help Finding a Non-Government Debt Relief Tactic?
Is Government help not enough? With just a few questions and a soft pull on your credit, you can get a free personalized solution to help you get debt-free.
What Does A Debt Relief Company Do
Debt relief companies are for-profit organizations that help consumers settle their debts for less than what they owe. These companies gear their services to clients who are so overwhelmed with debt that they cannot figure out a solution on their own.
While there are plenty of reputable debt relief companies out there, its important to note that the debt relief industry is rife with scams. The Federal Trade Commission says its wise to be judicious about companies you work with for this reason. You should also strive to avoid working with debt relief companies that try to collect fees before they settle your debts or ones that advertise a new government program that could help.
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Relief Through Debt Management Plans
A debt management plan allows you to pay your unsecured debts typically credit cards in full, but often at a reduced interest rate or with fees waived. You make a single payment each month to a credit counseling agency, which distributes it among your creditors. Credit counselors and credit card companies have longstanding agreements in place to help debt management clients.
Your credit card accounts will be closed and, in most cases, youll have to live without credit cards until you complete the plan.
Debt management plans themselves do not affect your credit scores, but closing accounts can hurt your scores. Once youve completed the plan, you can apply for credit again.
Missing payments can knock you out of the plan, though. And its important to pick an agency accredited by the National Foundation for Credit Counseling or the Financial Counseling Association of America. Even then, make sure you understand the fees and what alternatives you may have for dealing with debt.
How To Get Debt Relief Grants From The Government
May 19, 2021 · Debt Relief Grants from the Government. Firstly about the reality of governments debt relief grant we are very sorry to inform you that its just a fairytale with no real validity at all. The government does not offer any debt relief grant for free so if you find any websites offering information about free debt relief it probably contains misleading
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Option : Enroll In A Debt Management Program Through A Credit Counseling Agency
The benefit of professional help: A debt management program is the solution you use if you cant make progress on your own. If you dont have good credit or youve missed some payments, your creditors may be resistant to working with you. Having the help of a credit counseling agency means you get a team of negotiators on your side. That makes it easier to craft a repayment plan that your creditors will actually accept.
How It Works:
What Is Debt Consolidation
involves rolling multiple credit card balances into one, typically through a debt consolidation loan or a balance transfer credit card. A credit counselor may offer a debt consolidation option, or you can apply for a debt consolidation loan with a lender.
The proceeds from the loan are used to pay off credit card balances. Going forward, you make one payment to the debt consolidation loan. Debt consolidation could be a good fit to combine monthly payments and reduce interest rates.
You don’t necessarily need to close your credit card accounts with debt consolidation financing, though you should probably stop carrying balances and accumulating more debt.
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Settling Credit Card Debt
If you’ve maxed out your credit cards and are getting deeper in debt, chances are you’re feeling overwhelmed. How are you ever going to pay down the debt? Now imagine hearing about a company that promises to reduce or even erase your debt for pennies on the dollar. Sounds like the answer to your problems, right?
The Federal Trade Commission , the nation’s consumer protection agency, says slow down, and consider how you can get out of the red without spending a whole lot of green.
Does Consolidated Credit Adhere To These Guidelines
Yes. Consolidated Credit is a registered 5013 nonprofit organization. We are nationally accredited through the Financial Counseling Association of America . We are also approved by the Department of Justice to provide pre-bankruptcy counseling in our home state of Florida.
Connect with a certified credit counselor to get the help you need to get out of debt.
All articles and educational content on Consolidated Credit are written by and carefully reviewed by certified credit counselors, HUD-certified housing counselors and financial coaches.
Consolidated Credit follows strict sourcing guidelines and only links to reputable sources for information, such as government websites, credit bureaus, nonprofit organizations and reputable news outlets. We take every step possible to ensure all information comes solely from certified financial professionals.
If you feel that any of our content is inaccurate, out-of-date or otherwise questionable, please let us know through the feedback form on this page.
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How Else Can I Get A Reduction In Debt
While it may not be possible to get free Canadian government grants to pay off debt, there are other forms of debt reduction out there. In fact, there is a form of debt relief for everyone, no matter what your financial situation. A reputable Licensed Insolvency Trustee can help you to figure out the best form of debt relief for you. Below is a summary of the primary ways of gaining debt relief in Canada.
Us Department Of Labor
Like the SBA, the Department of Labor is another government agency whose mission focuses on more than major disasters. But under the Disaster Unemployment Assistance Act, the DOL gives disaster recovery aid to anyone whose livelihood has been disrupted by a major disaster. DOL provides these victims with unemployment benefits.
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What Is Debt Relief Or Debt Settlement
means negotiating a lower debt payoff with your credit card company. The creditor forgives or cancels the remaining balance in exchange for a lump-sum payment. The terms debt settlement and debt relief are sometimes used interchangeably.
It’s possible to negotiate a debt settlement on your own, but debt relief companies can do it for you if you don’t have a lump sum to offer creditors. You stop making credit card payments and pay money into a debt relief savings account. Negotiations begin when there is enough saved to offer your creditors.
Once an agreement is reached, the debt relief company facilitates payment to your creditors. It also collects a fee from you, typically between 15% and 25% of the enrolled debt.
You might consider this option if you’ve fallen behind on credit card payments and can’t catch up. Typically, creditors won’t approve a debt settlement unless the account is significantly past due. Remember that missing payments damage your credit scores.
Know Where To Get Help
If you’re having trouble paying down your debt on your own, get help.
If you need help you can contact:
- an accredited not-for-profit credit counsellor
- a financial advisor
They may suggest you explore other community and professional services first.
With their help, you’ll be able to:
- evaluate your current debt situation
- determine your present and future needs
- find ways to pay off the debt
Before you sign up for services to get help to pay off your debt, it’s important to explore your options and compare the different services offered.
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Make Your Minimum Payment If Possible
This may be difficult guidance if youve lost your income and youre having to prioritize your bills. There may be cases, though, where you get financial assistance from your credit card companies, but your interest continues to accrue. If this is the case, making the minimum paymentand making it on timecould help ease the burden later on.
Take The First Step To A Debt
It all starts with a quick, free consultation with a debt relief pro from Debt.ca. You can call us at to speak with someone now or complete the form above to tell us a little about your situation and then well reach out to you.
The consultation is confidential, quick and easy. Youll talk with a pro about your debts, budget, credit, and goals. Theyll review your options for relief and answer all questions you may have. Together, youll identify the best relief program for you, then theyll connect you instantly with an accredited and licensed service provider. Its that easy. So, what are you waiting for? You have nothing to lose but your debt!
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Achieve Financial Control How Much Debt Do You Have
Or speak to a debt consultant
Do government debt relief programs exist? Yes, there are several programs available to people with financial problems who need help. These programs include:
IRS Fresh Start program
Student loan disability discharge
Public service loan forgiveness
If you qualify, these programs can help you get out from under unaffordable debt. However, there are no government debt relief programs for credit card balances.
about credit card debt relief.
Weigh Your Options For Debt Relief
The credit counselors job is to provide all the information you need to make an informed decision to get out of debt. The counselor can help you understand how a debt management plan through a credit counseling agency will work. They will also explain how this solution differs from others, like debt consolidation, debt settlement, and bankruptcy.
Once they answer all your questions, you may decide to explore other options before you choose a solution. As you research other options, these free resources can help you zero in on the best solution for your needs.
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How To Pay Off Debt With Low Income
If you have a low income, you dont have a lot of wiggle room to pay for anything but bills. But with some hard work, you can maximize your money by setting and tracking financial goals.
The first step is to decide what debt-relief option to choose. What are your goals? What resources can you tap? What percentage of your budget do you allot for housing? For food? Utilities? Transportation?
If you feel overwhelmed, consider free nonprofit credit counseling, like that offered by InCharge Debt Solutions. The counselors are professionals who can help you budget and discuss debt assistance options.
Take these steps to gain control of your debt:
Bankruptcy: The Last Resort Option
Bankruptcys effect on your credit is severe and can last for many years, so its critical to explore and exhaust all other options before considering bankruptcy. If you decide to pursue bankruptcy, the two kinds most commonly used for individuals are Chapter 7 and Chapter 13. Your circumstances will determine which type you should file.
Take note: Bankruptcy doesnt necessarily discharge all your debt. Certain forms of debt, like student loans, can be very difficult to discharge, and the bankruptcy courts will ultimately decide how much of your debt gets eliminated.
Learn more about bankruptcy.
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Best Interactive Program: Freedom Debt Relief
We chose Freedom Debt Relief due to the fact it offers an interactive client dashboard that lets clients track their progress.
Free consultation and no upfront fees
Client dashboard lets you track your progress
Less transparent results reporting
Freedom Debt Relief has been in business since 2002 and currently employs over 2,000 highly trained debt experts and professionals. It starts clients off by offering a free consultation with a certified debt consultant who can help them talk over their debts and what they hope to accomplish. From there, they craft a personalized debt settlement plan that asks you to save a specific amount in a separate account to use for debt settlement later on.
One feature that helps Freedom Debt Relief stand out is its interactive process. Once you sign up for a debt settlement program and begin making deposits, youll qualify for a client dashboard that you can use to stay up to date on your program. This dashboard lets you see how much you have saved, how much you owe, and any progress Freedom Debt Relief has made negotiating debts on your behalf.
Freedom Debt Relief says its clients dont pay any fees until work is done on their behalf. By the end of their debt settlement programs, customers pay a fee equal to a percentage of the amount of debt they enrolled in the program. While Freedom Debt Relief cannot guarantee it will settle your debts, it claims that many of its clients wind up paying significantly less than the amounts they once owed.
Low Income Financial Assistance Programs For Debt Relief
Many times, when we are going through difficulties in our life, we just want to get help anyhow and we dont think that the help which is given to us is useful or not for us, or it can be a scam. Same as, many times most of the non-profit organizations come forward to help the people and also people think that getting help is the best source, instead of the government. But when you decide to take help from a non-profit organization then you need to read the small print. Because most of the time these non-profit organizations come with schemes that are not helping the people, but they do scam with them and people have to face more difficulties. Thats why it is most important to know about their schemes and investigate them in advance, so later you dont have to face any problem.
When you are seeking government grants to get out of debt, you will find a list of the government grants That are provided by them, and the amount will lie between $5 to $80 anywhere. But you find that in the end, all these grants are the same, and just are sold by different companies. So, first confirm which grant you need and which company is provided it to you, so that you cannot apply for the same grant with any other company.
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Debt Management Program Or Debt Repayment Plan
Consolidated Payment with Low or No Interest
A Debt Management Program is when you get help from a credit counselling organization to consolidate your unsecured debts into one manageable payment. Some people also call it a debt repayment plan. This type of consolidation works with your budget so that you dont have to borrow more money to try to get yourself out of debt.
As part of this program, a credit counsellor works with you to help you establish a realistic budget. Based on your budget, they help you figure out a realistic monthly payment that you can afford to pay on your debts.
With your permission, the credit counselling agency then approaches all your creditors and negotiates for all your debts to be included on the DMP at a payment you can afford and with all the interest rates either eliminated or substantially reduced. All of your debts are then paid off within 5 years .
To find out if a DMP is right for your situation, you can make a free appointment to speak with one of our certified credit counsellors. They will put together a budget for you, assess your financial situation, and see if a DMP would be the right fit.