Government Debt Relief
Due to a variety of reasons like unemployment or unexpected medical bills, many Nevada residents, as well as individuals and families across the country, are struggling to make ends meet. Often living paycheck to paycheck and barely paying monthly credit card minimums, many consumers are looking for government assistance to bridge the gap between expenses and income. However, while local and state agencies do provide a measure of emergency assistance for low-income families – there is no state or federal program in place to help provide consumers relief from credit card debt. While banks and other financial institutions have been provided bailouts and loans in recent years, this type of relief does not, unfortunately, extend to individuals and families in Nevada. However, there are a variety of debt relief options available to consumers experiencing a personal debt crisis – these debt relief options can include debt consolidation, debt management plans (DMPs) coordinated by credit counselors, debt negotiation, or even bankruptcy.
If you are struggling with credit cards and other unsecured debts such as store cards, gas cards, medical bills, doctor bills, and more, find out if debt relief can help you resolve debts.
Government Debt Help
Even though the government does not have a debt consolidation, credit counseling, or debt relief grant program to assist consumers in need, it is important to recognize that at both the state and federal government levels, much has been done in recent years to offer assistance and protect the rights of credit card holders and other individuals and families in debt. Here are a few areas where the government is working on behalf of consumers to help debts become more manageable:
Credit Card ACT of 2009
While all consumers bear the responsibility for paying off credit cards and other debts they incur, in recent years, aggressive credit card company policies have, in part, contributed to the increasing level of credit card debt facing Americans. As a result, the the Credit Card Accountability Responsibility and Disclosure Act of 2009 is a federal statute passed and signed into law by President Barack Obama on May 22, 2009. Approximately nine months later, February 22, 2010, the bill went into full effect.
While the Credit Card Act of 2009 does not place restrictions or controls on credit card company pricing, interest rate caps, or fees - it does provide some strong provisions and protections to help consumers. This bill is a proactive measure that can help provide a first-line-of-defense against credit card debt. It is aimed at addressing the credit card debt problem at its source, beginning with the actual policies and often confusing, hard to read terms contained in cardholder agreements.
The legislation was enacted due to the fact that many citizens and many in Congress believed that the credit card company revolving debt machine had grown out of control. "Random" rate increases, failure to give significant advance notice of rate increases, hard-to-understand credit card company disclosures and agreements, and a very aggressive credit card company practice called Universal Default, were just some of the factors contributing to the debt problem.
Thus, the Credit Card Act of 2009 now makes it mandatory that credit card companies give consumers 45 days advance notice of a rate hike. If the cardholder chooses to cancel the card in question, they are allowed to pay off the balance at the older, existing rate, not at the new higher rate. In addition, credit card companies are no longer allowed to retroactively raise interest rates on the credit card balance of a cardholder in good standing for reasons that have nothing to do with the cardholder's payment record with that particular card. In past years, credit card agreements that included the Universal Default provision allowed credit card companies to hike up rates suddenly, at the sign of any change at all in the credit "profile" of the individual. That means consumers with credit cards that included the Universal Default provision could be paying a 10% interest rate on a card and have a stellar payment record with that particular card, but if the consumer applied for credit, bought a car, or even became late on a different credit card - the card that you had a perfect record with could assess those events, totally unrelated to your payment record with their card, and legally hike interest rates from 10% to up to 29% or higher. This was considered by many to be a very unfair provision "hidden" inside of credit card agreements, and instituted by credit card companies. In the end, the Credit Card Act 0f 2009 has done away with this Universal Default clause that dealt such a crushing blow to many consumers, many of whom were already deep in debt.
So, while the government does not provide credit card debt relief grants, debt management, debt consolidation aid, or special programs to bail out everyday consumers from their debt, these provisions and others from the Credit Card Act of 2009 have been vital in helping consumers avoid the trap of credit card debt in the first place.
Mortgage Debt Relief
In addition to credit card relief legislation, the government has also stepped up to help consumers who have been hit by the subprime credit meltdown. The United States Department of Housing and Urban Development (HUD) now assists consumers via a program call the FHA Secure loan program. This helps provide aid for homeowners who are facing possible foreclosure and may need to refinance a subprime credit mortgage.
Federal Student Loan Consolidation
Another area where the government is helping to provide consumers with debt relief is in the area of federal student loan debt consolidation. This program may help college loan debtors to consolidate all federal student loans into a single lower interest rate loan and make a single, more manageable payment each month. Please note that this loan consolidation program only applies to federal student loans and not privately funded loans. For more information and assistance, go to the U.S. Department of Education's Federal Student Aid page.
In addition to federal economic relief aid, the state of Nevada also has a variety of programs available to help consumers in need of relief. As is the case with the federal government, Nevada does not have credit card relief programs, grants, or consolidation loans to help consumers pay off their credit card debt obligations.
However, for individuals who are struggling - including low income families, the elderly, and those experiencing financial hardship, the state has a comprehensive program of support that includes the following: Nevada Check Up (SCHIP), Nevada Energy Assistance Program, and the Head Start program, among others. To find out more about these services designed for low-income families and individuals, go to the state's homepage Benefits section.
If you are in need of relief from credit cards and other unsecured debts, you can get a free debt relief analysis and savings estimate at no obligation. Begin online by answering a few questions regarding your financial situation.