These days, struggling with credit card debts is, unfortunately, a concern for many Americans - who may also be wondering if the government offers assistance through some form of grant to payoff credit cards or other debts. In addition, to make matters worse, those living in states like New York have to deal with a higher cost of living than the rest of the country. If you are experiencing financial hardships due to any number of reasons, like unemployment, a medical emergency, or a personal crisis, you may be interested in finding out about your debt relief options - including debt consolidation, debt settlement, or even bankruptcy.
The fact is, government-funded grants are not a viable option used in resolving consumer credit cards and other debts. While the government has provided financial bailouts for banks and other financial institutions, it does not provide grants to payoff credit cards or other structured grant program to relieve consumer debt. However, there are several debt relief options that are available to consumers.
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Understanding Your Debt Relief Options
Instead of looking for government-funded grants, it may be wiser to look at your other options when it comes to finding debt relief. One way that has been proven to help many consumers is debt consolidation through a credit counseling agency, or a debt management plan (DMP). When you enroll in a debt consolidation program, credit counselors will review your finances, taking into account your outstanding debts and ability to pay off those debts.
Credit counselors typically develop a strategy to help reduce your debts and submit proposals (on your behalf) to creditors asking for a reduction in interest rates, or the elimination of any late fees and other penalties. The goal of debt consolidation is to provide you with a single, more manageable, and more structured repayment plan so you can, hopefully, direct more of your money each month towards paying the principal of your debts versus simply just paying the interest.
In addition to debt consolidation, another viable debt relief option for many consumers, is debt settlement - a process where you hope to settle or negotiate with creditors for substantially less than your original debt amount. Many consumers in a debt settlement program are typically advised to stop paying their credit card bills so they can accumulate funds, over a certain period of time, which can be later used to make a reasonable settlement offer.
In many cases, creditors may threaten to take legal action against consumers that default on the terms of their credit card agreements. Many of these consumers, as a result of non-payment, will typically see their credit scores plummet. It is also important to understand that any money saved through a debt settlement program is subject to federal taxation
In spite of the potential downsides with debt settlement programs, they have still become an increasingly popular debt relief option for consumers going through financial hardship -- especially those who may feel that bankruptcy is their only option. The fact is, while debt settlement programs will typically impact one's credit negatively, settlement normally does not have as serious or long lasting an impact on credit as a personal bankruptcy.
Government Aid in New York
While the government does not typically provide consumer debt relief in the form of grants, it does offer a variety of programs that can assist consumers who are struggling with their finances or possibly overwhelmed with credit card debts. If you're in a similar situation where your debts, for instance, have become out of control and your income has been reduced, and you may be forced to forego the essentials - such as medicine, food, and utilities - then, fortunately, help is available.
There is a statewide program in New York called Temporary Assistance, which provides temporary help for individuals who are unable to work, can't find unemployment, or need help paying for expenses.
Temporary Assistance offers two programs - Family Assistance, which provides cash assistance to needy families with a minor child; and Safety Net Assistance (SNA), which is designed for single adults, childless couples, and other individuals who do not qualify for Family Assistance. To apply for any of these programs, you can visit your local Department of Social Services, page.
The bottom line is, although the government does not typically provide consumer debt relief in the form of grants - you do have options. So, regardless of which option you choose to get credit card debt relief - whether it's in the form of debt consolidation or debt settlement services - or you simply want to take advantage of a government-funded program to assist with your needs - there is help available for you and your family.
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