How to Find a Legitimate Federal Debt Relief Program

Yes, government debt relief programs do exist. However, federal debt relief programs are only available for student loans.

Federal student loan relief programs are available at StudentLoans.Gov.

The key to getting a low monthly payment and the maximum amount of loan forgiveness is to qualify for an income-driven repayment plan.

The Pay As You Earn plan is a popular federal program that offers a low monthly payment and loan forgiveness.

The lower a person’s income and bigger their family size, the lower their consolidated monthly payment will be.

Students do need to recertify the Pay As You Earn and all of the income-based repayment plans every year, so if a person’s income changes so can their payment.

AFSLR Certified Student Loan Expert, Wesley Hendrickson, stated; “Don’t forget to recertify or you can lose your eligibility for loan forgiveness, and your payment can skyrocket. This is the most common mistake that I see students make. The next thing you know, your wages will be getting garnished, and credit score is shot.”

For credit card relief, government programs don’t exist. Credit card relief options available through third-party companies are available. Make sure the company you choose is IAPDA Certified and highly rated by the Better Business Bureau.

A person can also work directly with their credit card company, but the savings will be minimal compared to what a person can save with a debt relief program. Your credit card company may temporarily reduce your payments and interest, but it will only be temporary.

Most debt relief companies across the nation offer debt settlement services, but this program comes with negative consequences.

A person’s credit score can be negatively impacted and credit card lawsuits can occur while on a debt settlement program. In only about 2% of all cases, credit card companies will sue a person while on a debt settlement program. While this isn’t a large percentage of lawsuits happening, it is something that you need to beware of and ready for.

Before you join a debt settlement program, make sure to understand ALL of the potential negative consequences. Do your research and make sure the company helping you is transparent and has reputable credentials.

How debt validation works

Debt validation can allow a person to legally stop paying a debt and walk away from the debt without paying a dime to the debt collection company and only having to pay the debt relief company’s fees.

Debt relief programs that improve your credit score

No debt relief program will improve your credit score unless you get a debt relief loan to pay off your credit cards.

Since all plans can have an adverse effect on credit scores; debt validation comes with credit repair, aiming to get the debt and it’s associated negative marks completely removed from the clients’ credit reports by the end of the program.

Rick Sorrentino, IAPDA Accredited Counselor, advises consumers; “If you can afford to pay at least minimum monthly payments, try to find another way to resolve your debt besides using debt settlement or debt validation. These programs should only be used as a last resort, to save a person from having to file for bankruptcy.”

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Financial Transformation Through Christian Debt Relief

Many may think that Christian debt relief is a magic pill for overwhelming credit card debt when in fact these organizations will also employ most of the same options that other credible credit counselors and reputable debt relief agencies will use to help get a client out of debt. This is why; many debtors have been burned by dodgy agencies posing as Christian debt relief centers only to find out that the faith-based principles and assistance they seek are simply magical illusions propped by deceptive marketing.

True Christian debt relief will not make claims for a miraculous intervention for unsecured debt such as those owed from credit cards. Nevertheless, the miracle happens when those under a genuine Christian debt relief program transforms from a debt burdened and overspending complainant to someone who owns up to his or her obligations and dutifully settles them and from then on successfully manages their finances following true Christian stewardship teachings.

Following Biblical Principles

Unfortunately there are scores of scammers and hooligans who use the term “Christian” at will and at their own liberty. It is outright blasphemy and this has made the term Christian debt relief somewhat of a joke. Nevertheless, there are still legitimate Christian debt relief ministries that do provide free counseling and guidance to help debtors in distress get up from under their debts.

Quoting Bible verses is not the mark of a real Christian debt relief group. The Bible teaches about faith that works and truly Christian-principled debt help will result in meaningful efforts that lead to the reduction or elimination of debt without resorting to deception or illegal means. These debt relief programs are centered on Christian counseling, re-education as well as intensive budgeting and financial planning. This enriches the client to become good financial stewards even beyond the full repayment of the debt.

For Better, Not For Worse

With sham debt relief operations, clients are likely placed in more financial jeopardy than they already are. Unscrupulous debt management programs might reallocate your deposits for other purposes instead of repaying your credit card accounts. This would result not only in money lost but also to mounting fees and charges burying the debtor in worse debt than when he began.

In terms of costs, be wary of debt relief programs that ask for so called “voluntary contributions” from its clients. Others have hidden charges that cost an arm and a leg. Real Christian debt relief ministries are usually funded by church communities and similar non-profits to operate and rarely needs substantial fees. If at all, the fees will be marginal, even optional and should not deter Christian credit counselors from dispensing their mission and service to you.

True Christian debt relief services will help alleviate you from your burden of debt and will lead you to the way out of your slavery to debt and towards lasting financial transformation. Check your consumer protection groups and local churches to help you find a suitable Christian debt relief service in your community.

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