Being in debt can be extremely stressful. As your debt builds, you may start wondering if you can receive any type of assistance. While there are a few different options to look at when it comes to debt relief, you might start to wonder: is government debt relief an option?
The answer is yes — sort of — so let’s take a look at what government debt relief programs are available to cover.
First of all debt relief programs come with strings. There is no scenario where you will have your debt paid in full and you never have to worry about it again. However, getting some assistance can help you get back on your feet so you can start to pay off your debt at a reasonable rate.
The second thing to note here is that no government debt relief program exists that will help you get out of credit card debt. However, there are other types of debt for which you may be eligible to receive government assistance.
Thee include:
Income-Driven Student Loan Repayment
If you are one of the millions of young professionals who are drowning in student debt, you may qualify for one of two types of income-driven student loan repayment plans. You might go with a standard repayment plan, which means you agree to pay regular installments over a set term.
You could also go with a graduated payment plan, which means your payments will be matched to your income level, and increase every two years as you (hopefully) begin to earn more money in your chosen field.
IRS Fresh Start
If you have fallen behind on your tax payments then you might qualify for the Fresh Start program, which can help you pay back your debt to the government by arranging installment payments or a settlement program
Medical Debt
The last thing you want to worry about when dealing with a medical situation is how you’re going to pay for it. If you’re left with outstanding bills due to a medical issue then the government can be a good resource to go to. Medlineplus has a section dedicated to questions surrounding medical debt, and the government can point you towards federal and state programs that can assist you with your payments
Public Service Loan Forgiveness
If you work in public service, then you may be eligible for student loan forgiveness after working a certain number of years in your field. Public service employees include workers in emergency services, public law services, public education, public library services, and law enforcement, among others.
Although debt relief can be extremely useful if you don’t see a realistic solution to your debt problems, it’s always best if you can find a way out of debt on your own.
Sometimes you are even able to work out payment arrangements with your creditors yourself. So, is government debt relief an option? Yes, it is, but you would always do best to try to avoid ever needing to use it. Live within your means, don’t spend more than you make, and search online or talk to your bank for tips on how to budget and plan for your future.
Debt will not go away if you ignore it, so make sure you always stay on top of what you owe, and make a plan so that one day you can live debt-free. Further, if your debt falls into one of the categories not listed here, you may find debt relief help in the private sector.