Government Debt Relief

There can be confusing and mixed signals coming from Washington these days concerning debt relief for U.S. consumers. Is there government debt relief for the average American today, and if there is government debt relief, how do these programs work? The word “stimulus”is thrown around like a football these days. But what does it really mean? The fact is that the U.S. government does offer a great many grant programs and assistance/entitlement programs to help those in need. Yet despite what some may claim to the contrary, government debt relief that can help a person to erase debt such as that from credit card debt does not exist.

Government Debt Relief vs. Government Grants

We've all most likely seen the commercials and advertisements claiming that a plethora of government grants are out there simply for the asking. These advertisements claim that a person only need access the right resources. Yet in most cases, these marketers rarely actually show a person where it is that these government grants can be accessed. The reason is simple: government grants for the purpose of paying down debt such as credit card debt are not factual. While there are government relief programs to help needy individuals and families with such things as paying rent and even utilities in some cases, when it comes to credit card debt, there simply are no such grants. Consumers are advised to steer clear of such claims to the contrary.

Federal Student Loan Consolidation

Parents of students or students themselves who are burdened by the weight of federal student loans do in fact have access to a federal student loan consolidation program. With this true government debt relief, a person can consolidate their federal student loans into a single loan with a lower interest rate. This also provides the convenience of a single monthly payment to manage. This government debt relief is applicable to federal student loans only. Other private loans are not eligible for this government debt relief.

Modify or Refinance Mortgage

Another area where the U.S. government does in fact provide government debt relief is with helping to make monthly mortgage payments more affordable. The Obama “Making Home Affordable Program” is one that offers opportunities for homeowners to refinance or modify their mortgage. An additional feature is the “Home Affordable Foreclosure Alternatives Program”. This government debt relief program is for homeowners who, rather than modifying their mortgage, may be interested in a short sale or deed-in-lieu of foreclosure.

Additionally, the Obama administration has recently announced additional help via two newly targeted foreclosure prevention programs for those homeowners who are struggling with unemployment. This will add an additional $2 billion in funding from the U.S. Treasury's Hardest Hit Fund for homeowners in 17 states as well as the District of Columbia. The U.S. Department of Housing and Urban Development (HUD) is also set to launch a new $1 billion program which will aid unemployed homeowners in other states.

Affordable Home Refinancing

In today's unpredictable real estate market, many homeowners pay their mortgages on time but perhaps may not be eligible for traditional refinancing due to a decrease in the market value of their home. Yet through the Home Affordable Refinance program, a true government debt relief program, borrowers whose loans are held by either Freddie Mac or Fannie May may be eligible to refinance into a mortgage that is much more affordable.

Loan Modification

Additionally, there are a great number of homeowners who are struggling to meet their mortgage payment each month perhaps due either a job loss or higher interest rates. A Home Affordable Modification, another true government debt relief program, can provide these types of homeowners much more affordable mortgage payments.

Yet even if these circumstances do not apply to you, help and hope is still available. Other debt relief programs exist today outside of government debt relief programs which can help a person to dramatically lower their debt and establish a road map for getting out of debt on a fast track basis. Get started today with a free debt evaluation!