The government has no specific programs to grant consumers bailout from credit card debt. However, there are a variety of other ways in which the government can provide relief, from recently passed legislation to regulate credit card companies and protect cardholders, to granting bankruptcy filings which can partially or fully forgive credit card debt , to publicly funded credit counseling agencies which can provide you with debt management plans and indirectly through consolidation loans.
Read on to learn more about each type of credit card debt relief government program. Recently, the government has passed legislation designed to make the likelihood of getting into, eventual consequences, and handling of credit card debt easier for consumers. There are three major components of this legislation, which regulates credit card companies and protects cardholders:. If the Court reviews your records and finds your debt to be eligible, you may be granted partial or full relief.
If you are facing credit card debt, this is the closest to a credit card debt relief government program. Note: that the recently passed Coronavirus Aid, Relief, and Economic Security CARES Act places special requirements on companies that report your payment information to credit reporting agencies if they provide payment relief due to the coronavirus pandemic.
During the relief period, you want to make sure to look at your statement each month for any errors or inaccuracies, and if you see anything, make sure to refer back to the agreement so you can dispute it.
There may be cases, though, where you get financial assistance from your credit card companies, but your interest continues to accrue. If this is the case, making the minimum payment—and making it on time—could help ease the burden later on. Your credit card company has 30 days to confirm receipt of your notice as well as two complete billing cycles — but no more than 90 days — to investigate and respond to you.
The credit card company can show good faith efforts to obtain the necessary information and make a determination as quickly as possible, and complies with all other requirements pending resolution of the error. You can typically check your credit reports for free, once a year.
However, the three major credit reporting agencies — Experian, TransUnion and Equifax — are currently allowing consumers to check their reports weekly for free. However, if you were already behind on your payments at the time you receive relief, the lender is not required to report that you are current.
And, if you find an error, you should work to dispute it , this is when it would be helpful to have a copy of the written agreement on hand. If you have a debt in collection or a collector is attempting to contact you, it can make a tense time feel even more stressful.
Learn more about your debt collection rights, including how to contact and negotiate with collection companies. Within five days after a debt collector first contacts you, the collector must send you a written notice that tells you the name of the creditor, how much you owe, and what action to take if you believe you do not owe the money. If you owe the money or part of it, contact the creditor to arrange for payment.
If you believe you do not owe the money, contact the creditor in writing and send a copy to the collection agency informing them with a letter not to contact you. Many states have their own debt collection laws that are different from the federal Fair Debt Collection Practices Act.
If you're unable to pay your creditors, filing for bankruptcy can help you get a fresh start. Bankruptcy involves liquidating or selling off your assets to pay your debts. Or it can mean creating a payment plan. Before considering bankruptcy, you should first explore other debt management options. Bankruptcy information stays on a credit report for 10 years. It can also make it difficult to get credit, buy a home, get life insurance, or sometimes get a job.
Federal courts have jurisdiction over all bankruptcy laws, so you must file a petition in a federal bankruptcy court. There are two main types of personal bankruptcy:.
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