Like unicorns and fire-breathing dragons, government programs that help consumers with credit card debt simply don’t exist.
Most of us adults lived through Covid in 2020 and 2021. We saw the government intervene with the economy where they disbursed bailout money even to individuals that didn’t need financial assistance. The American Rescue Plan Act generated Economic Impact Payments of up to $1,400 for eligible individuals or $2,800 for married couples filing jointly, plus $1,400 for each qualifying dependent, including adult dependents. The COVID-related Tax Relief Act of 2020 authorized additional payments of up to $600 per adult for eligible individuals and up to $600 for each qualifying child under age 17.
Since your personal credit card debt crisis doesn’t merit the term “pandemic”, don’t wait for the government to send any relief money your way.
Government Regulation
However, many government agencies heavily regulate debt settlement companies and credit counseling agencies. States such as Nevada, Michigan and New Hampshire conduct diligent periodic examinations to verify compliance within the industry. Furthermore, most other states have renewal processes ensuring these third-party agencies meet their standards.
The Department of Justice regulates agencies as well. Credit Counseling organizations must be approved by the United States Trustee Program to provide bankruptcy related services. The Department of Justice displays their list of approved agencies online.
With the lack of government assistance with credit card debt, consumers must turn to debt consolidation services instead. Credit Counseling, Debt Settlement, Debt Consolidation Loans and Balance Transfers are the most common options that consumers seek for alternatives. Each debt consolidation service has its own pros and cons. Therefore, do you research to determine which service works best for you.
Regardless of which service you decide to help you, reducing your monthly spending is imperative. Credit card debt comes from overspending. Each time you swipe your card, you are buying items or services you can’t afford. Put together a monthly budget that cuts the overspending. Look into ways to increase your income. Find part time work on the weekends. Consider a career change if you believe you can earn more money.
Some define insanity as doing the same thing over and over again and expecting different results. If you want new results then you must change your spending behavior. There is no magic button or pill to fix your debt. And certainly not any assistance from the government as federal debt relief programs don’t exist. Make the necessary changes and start your debt free journey today.