The government is probably your best friend when it comes to receiving debt help, especially if you have student loans. They offer a variety of websites dedicated to giving you helpful tips and advice on certain policies that will help you eliminate your debt. They also help people that meet certain criteria reduce their debt. Below is a list of common tips that the government suggests for people struggling with debt.
Government Debt Help: Tips for Settling or Reducing Your Debt
- In recent years, the U.S. government has provided relief to a few major bank corporations, such as Bank of America. As a direct result of these funds, more and more banks are providing their customers help with paying off their debt. The specific result is that these companies allow people to settle their debts for much less than their actual balance. If your debt is reasonably small and you display a reliable income, you should speak to a bank representative about it. If they deny your request, you can also speak to a debt settlement company to review your case.
- The debt relief order (DRO) is another great resource. You can qualify for government debt help if you have a long-standing history of unmanageable debt and a relatively low income. You can have your case reviewed by official debt advisors, approved by the Insolvency Service. If you qualify, you can have your debts written off. This order was created as a particle alternatives to declaring bankruptcy.
- If you are struggling with student loans, government debt help offers a plethora of advice and aid to make your payments more affordable. They even have programs to wipe away your debt in exchange for military service, teaching in low-income districts, volunteer work, and even public service work.
- One of their more drastic piece of debt help advice is filing for bankruptcy. This is considered as a last resort because of the adverse effects it will have on your credit for up to 10 years. After filing for chapter 13 or 7 bankruptcy, you might find it difficult to buy a car, home, or anything else on credit. Depending on your situation, this might be the only option left. Keep in mind that in most cases, bankruptcy will not eliminate your student loan debt.
The government has taken a lot of steps over the last decade to help people, especially students and those of low-income, to settle their debt or reduce it significantly. If your situation fits any of those described above you should inquire about the various government debt help designed to help people in your situation.