There are good news and bad news concerning this approach to government help with credit card debt relief. The bad news, obviously, is that “government debt relief” does not really exist. But the good news, at least, is that the government does sometimes take steps to prevent unscrupulous financial activities. Let’s look at a few examples of government intervention that might apply to you.
A number of companies are free to interact with your credit card company. They can advise you, negotiate with the company, settle your account, or even take possession of your account and liquidate it. This is not government debt relief. These services are provided by non-profit consumer advocacy groups and other similar organizations.
So what is government debt forgiveness? If you owe money to a credit card company, the Internal Revenue Service will often require payment in full. You will be taxed for this, as with most tax issues. However, the debt is forgiven. It will not go on any record, and the credit card company may still report that you are owing them money. So if you have numerous accounts, you may wish to consider this route.
Of course, the IRS will not actually make you pay any taxes. If you have a decent credit score, you probably qualify for credit card debt forgiveness. Your debt settlement organization will draw up a formal agreement, and you sign. You will then be forced to pay the agreed upon amount in full. Your credit score will not be harmed.
However, if your credit score is poor, or you are unable to afford even a minimal payment, then debt management might be a better option. Debt management programs allow you to take care of your obligations through a credit counseling service. They will negotiate on your behalf, settle your debts, and help you get a better credit score. This allows you to start all over, with a clean slate, and a good credit score to help you re-establish your life and finances.
This option can be a viable solution for you. If you are able to handle a portion of your debt, and you need a little assistance with your payments, you may want to consider debt management. But if your debt exceeds ten thousand dollars, then you should seek out the government’s assistance with credit card debt relief program. The government understands that it is difficult for you to repay all of your credit card balances, and they understand that you need some help with your situation.
You have two main options with government debt relief grants: you can choose to apply for a government approved grant, or you can apply for debt forgiveness. With a grant, you will receive cash, which you would repay with interest when your debt is paid off. When applying for debt forgiveness, you can get money that you would pay back to the government, but you cannot use the money to pay down your balance. Debt forgiveness programs are only available for individuals who are not delinquent on their credit cards.
There are many advantages to applying for government debt relief help. One of the biggest benefits is the potential for receiving more than one grant. For instance, the government will forgive your balance if you have less than ten thousand dollars in outstanding debt. This means that you will not need to repay the balances of your credit card debts for a few years, allowing you to save money. With the right to grant, you may be eligible for as much as thirty-five percent of your debt amount.