Government Debt Relief Programs: What You Need to Know

The average American was $104,215 in debt in 2023, according to an Experian report from February 2024. Dealing with a six-figure debt load can be challenging, especially if you have other financial obligations and a limited income. While the government does not offer debt relief programs for unsecured debts like credit cards and personal loans, there are still options available to help individuals manage their debt.

Government debt relief programs exist for specific types of debt, such as federal student loans, mortgages, and medical bills. These programs are designed to assist individuals facing financial hardship or limited means to repay their bills. For example, the government offers forbearance and loan modification options for mortgage holders who are struggling to make payments. Additionally, there are programs like the Public Service Loan Forgiveness for federal student loans and the Homeowner Assistance Fund for homeowners impacted by the COVID-19 pandemic.

In addition to government programs, there are other alternatives available to help individuals manage their debt. These include debt payoff apps, credit counseling services, debt consolidation loans, and balance transfer credit cards. It’s important to explore all options and choose the best solution based on your individual financial situation.

While free government debt relief programs may not be available for all types of debt, there are resources and support available to help individuals navigate their financial challenges and work towards a debt-free future. Whether through government programs, nonprofit organizations, or private companies, there are options to help individuals take control of their finances and reduce their debt burden.