Does the US government have a debt relief program?
Asked by: Mrs. Janet Larkin | Last update: October 23, 2025Score: 4.6/5 (45 votes)
Key Takeaways. There aren't any free government debt relief programs for credit card or personal loan debt other than bankruptcy. Many types of government debt relief exist in the form of grants and low-interest loans for specific purposes.
Is there really a government program for debt relief?
When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.
Can the government pay off my debt?
While there are no government debt relief grants, there is free money to pay other bills, which should lead to paying off debt because it frees up funds. The biggest grant the government offers may be housing vouchers for those who qualify. The local housing authority pays the landlord directly.
What is the federal debt forgiveness program?
Public Service Loan Forgiveness (PSLF)
The PSLF Program forgives the remaining balance on your Direct Loans after you've made the equivalent of 120 qualifying monthly payments while working full time for a qualifying employer.
Are there government grants to pay off debt?
Keep in mind that the government doesn't offer grants to help Americans pay off consumer debt from things like credit cards. It does, however, offer financial support for Americans struggling with a range of tough financial situations.
White House orders freeze on all federal financial assistance
How to apply for government grants?
- Learn. Go to the Grants Learning Center for an overview of grants.
- Check. Make sure you are eligible before applying.
- Search. Find federal grants that align with your work.
- Register. Sign up with Grants.gov to apply using Workspace.
- Apply. Complete and submit your application using Workspace.
- Track.
Is freedom debt relief legit?
Is Freedom Debt Relief Legit? Freedom Debt Relief is a legitimate company. It is BBB-accredited and is rated A+. It is also a member of the American Association of Debt Resolution (AADR) and is certified by the International Association of Professional Debt Arbitrators (IAPDA).
Is it worth doing a debt relief program?
Debt relief plans can help make your payments more manageable, but they're not right for everyone. It's important for you to understand how each plan or program works and how debt relief can affect your finances.
How can I legally get rid of credit card debt?
- Debt Settlement. Debt settlement is a process that involves negotiating with creditors to pay less than the full amount you owe. ...
- Debt Management Plan (DMP) A debt management plan (DMP) is a special payment plan you can enroll in through a nonprofit credit counseling agency. ...
- Bankruptcy.
Is the national debt relief program legit?
Yes, National Debt Relief is a legitimate company that helps individuals struggling with unsecured debt, such as credit card debt, personal loans, and medical bills. They specialize in negotiating with creditors to reduce the total amount owed, providing a potential alternative to bankruptcy.
What is the National debt relief Hardship Program?
National Debt Relief is for consumers with over $7,500 in unsecured debt, who have exhausted all other debt-relief options apart from bankruptcy. If you don't settle the debt, you will continue paying late fees and racking up interest as your credit score plummets.
Does national debt relief ruin your credit?
Depending on your personal situation and whether you have already missed payments to your creditors, debt settlement programs may have a negative impact on your credit score. Due to it being a separately regulated service, we do not provide credit repair services or offer advice on ways to improve your credit.
How to ask for debt forgiveness?
Unfortunately, my circumstances are unlikely to improve in the foreseeable future and I have no assets to sell to help clear my debt. I am therefore asking you to consider writing off my debt as I can see no way of ever repaying it. If you are unable to agree to this, please explain your reasons.
Does debt forgiveness hurt your credit?
The short answer is yes, credit card debt forgiveness can negatively affect your credit score. However, the impact depends on various factors, including your current credit score and the specifics of your debt settlement agreement.
How to get debt written off?
- Bankruptcy: Writes off unsecured debts if you cannot repay them. Any assets like a house or car may be sold.
- Debt relief order (DRO): Writes off debts if you have a relatively low level of debt. Must also have few assets.
- Individual voluntary arrangement (IVA): A formal agreement.
Is there a federal debt relief program?
There aren't any free government debt relief programs for credit card or personal loan debt other than bankruptcy. Many types of government debt relief exist in the form of grants and low-interest loans for specific purposes.
How to pay off $40,000 in credit card debt?
- Using a balance transfer credit card. ...
- Consolidating debt with a personal loan. ...
- Borrowing money from family or friends. ...
- Paying off high-interest debt first. ...
- Paying off the smallest balance first. ...
- Bottom line.
Is debt clear USA legitimate?
Americor has helped over 400,000 individuals and families pay off more than $3 billion of unsecured debt and has an A+ rating from the Better Business Bureau (BBB) with more than 10,000 five-star reviews, which powers the Debt Clear USA program. Together, they assist Americans on their journey to becoming debt-free.
What two debts cannot be erased?
Perhaps the most common debts that cannot be discharged under any circumstances are child support, back taxes, and alimony. Here are some of the most common categories of non-dischargeable debt: Debts that you left off your bankruptcy petition, unless the creditor had knowledge of your filing. Many types of taxes.
Who qualifies for debt forgiveness?
Debt forgiveness could help with credit cards, back taxes or student loans. But to qualify, you'll typically need to meet certain conditions. This might mean proving financial hardship or making a certain minimum number of payments on your debts. Some forgiveness programs will have stricter criteria than others.
What are the disadvantages of a debt relief program?
- Requires a 3-5 year commitment.
- You'll likely have to pay a set up fee and a monthly fee.
- Loans can't be included.
- You'll have to close some of all of your credit card accounts.
- Initial impact to credit scores can be negative.
Does debt relief really exist?
Debt relief options, such as negotiating directly with creditors, getting on a debt management plan or filing for bankruptcy can help eliminate your debt or make it easier to repay.
Is debt Free America legit?
Debt Free America is NOT a BBB Accredited Business.
To become accredited, a business must agree to BBB Standards for Trust and pass BBB's vetting process.
Who qualifies for freedom debt relief?
Freedom Debt Relief at a glance
Minimum debt required to enroll: $7,500. Types of debt eligible for enrollment: Unsecured debt, including credit cards, medical debt, personal loans, private student loans, collections, lines of credit, repossessions and payday loans.