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Facing a pile of bills you can’t handle?

Are credit card companies bugging you on the phone?

Truth be told, you’re not alone because many others are going through the same horror. This explains why it is not at all surprising that many people are on the lookout for debt relief services that can save them from being buried in debt.

Debtors can choose from an array of different debt relief services offered by various companies.

A simple search on the internet will give you a wide array of debt relief firms that promise to get you out of all your financial liabilities. Be extra careful though because quite a few of these companies are proven to be scams that make people mire in the ground of debt even more and ultimately make debtors totally empty-handed.

On the flip side, there exist some legitimate companies that really help people with debt relief services.

For you to know if the company is well established, verify if the firm belongs to the local Chamber of Commerce.

Following that, determine whether the Chamber is a certified member of the Chamber of Commerce of the Unites States. If so, it is a good indication that the company is reputable and can most likely provide you with debt relief services that match your circumstances.

From there, check to see if the firm is an affiliate of The International Association of Professional Debt Arbitrators (IAPDA). The firm must have IAPDA certified debt arbitrators because these mainly are the people who have full comprehension of the legal guidelines concerning debt settlement. That being said, it means that these are the only people who can truly understand your financial situation and can offer you debt relief services based on your needs.

After learning about accreditations and memberships, check the company’s track record. A company that had been able to survive a 3-year startup period can somewhat give you an assurance that the firm, at this point, is stable enough to offer you effective debt relief services that you’re looking for.

When on the lookout for debt relief service companies, be sure to give some thought on the considerations mentioned above.

But please remember that in order to pull through, you must start helping yourself by saving more and spending less.

An Overview On Government Debt Relief Programs

In these times of financial doom and gloom, people are seeking out government debt relief programs to help them cope.

The troubled economic system has made countless of Americans sinking in debt. Nevertheless, a lot of individuals still keep on coughing out money without thinking about its impact in the future.

These and more are the reasons why people are looking for some assistance from the government.

Government debt relief programs are very much needed that a lot of people devour the internet to look for any kind of government assistance they could get.

The common misconception about these programs is that the U.S. government can give people a super check that can make their debts disappear like magic. Regrettably, there is absolutely no such thing as a government debt relief program that can totally wipe off a person’s financial obligations.

But the fantastic news is, there are available assistance programs that can in some way provide you with a little bit of debt relief.

The following are just some of the government debt relief programs that can assist you in settling your debt: debt relief for student loans, debt relief for mortgage, and debt relief for credit cards.

The College Cost Reduction and Access Act (CCRAA) of 2007 or the law that gives loan debt relief, is one government program that assists students and parents in paying federal student loans. This Act significantly lessens student loan burdens by lowering monthly payments and offering partial loan forgiveness.

Under the Mortgage Relief Act, the discharge of qualified principal residence indebtedness is excluded from the gross income of the homeowner. Just recently, the U.S Department of Housing and Urban Development (HUD) has created some new programs to assist those homeowners who are faced with financial mortgage difficulties.

The only credit card relief program offered by the federal government is in the form of the Credit Card Reform Act of 2009, otherwise known as the Accountability Responsibility and Disclosure Act of 2009. The law basically requires credit card companies to: 1.) Give holders a minimum of 45 days notice before making any changes in the contract, 2.) Send the bills earlier, specifically three weeks in advance, and 3.) Stop increasing the interest rates on the existing credit card balance.

If the aforementioned government debt relief programs don’t work for you, worry not because there are some other available debt relief programs that might possibly befit your situation.

Just keep an eye on other debt relief options and you surely will find one that can provide you some relief from debt.

Letting Yuppies Breathe With Student Loan Debt Relief

A student loan is designed to assist students pay for university needs. Interest rates are usually lower, and repayment are mostly deffered until such time that they leave the university.

Despite these, however, many students still encounter difficulty when the time to pay comes thus the need for student loan debt relief.

Different countries have varying terms and conditions.

There are some subsidized loans sponsored by the U.S. federal government as well as private student loans in the U.S. Repayment is income based and normally starts about 12 months after leaving school.

The students attending the university in Australia can seek a financial assistance from the HECS-HELP. The repayment of the student loan made to HECS-HELP is collected by the government in the form of tax specifically the supplementary tax.

The Student Loans Company (SLC) which is a government funded agency helps students pay off their university education in the United Kingdom. Before 1998-1999, repayments used to be made in 60 monthly amortizations which starts once the students starts earning. This repayment scheme has been modified to a continuing repayment for 25 years or until the student turns 65.

Consequently, a new repayment scheme has been imposed by the U.S. federal government. Collection is still based on Income-Based Repayment.

However, students can negotiate with the government for student loan debt relief in the form of a repayment of 15 percent of the difference between their income and the base budget allowance. Those whose gross earnings are at one and a half times the poverty level need not pay any penny.

Aside from this there is also a forgiveness program which is open for the students who will eventually go into government or public service. The BC Interest Relief in the British Columbia is helping those poor students get a student loan debt relief from six to thirty months. The relief comes in the form of allowing the students to pay the minimal interest rates during the said time.

The student borrower have the option to make the repayment in 19 and a half years.

While student loans are useful, repayment becomes a problem because of low income or inflation. Having very small salaries that are barely meeting their basic needs make repayment impossible.

This is why student loan debt relief is so useful.

Mortgage Debt Relief Act Offers Relief Indeed

A good government knows how to take care of its peoples’ basic needs such as food, clothing, education and shelter.

Taxpayers are being detrimentally affected by economic recession thus, their debts are growing and foreclosures of mortgages of their primary home. And adding to this are the mounting tax which can add up to the taxpayer’s problems.

The inception of Mortgage Debt Relief Act of 2007 or Mortgage Forgiveness Debt Relief Act of 2007, as it is popularly known, was a government response to the countrywide economic hardships. This law is applicable only from 2007 to 2012.

Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure, qualifies for the relief. The Mortgage Debt Relief Act of 2007 also allows certain tax exclusions. Some of the most significant highlights of the Mortgage Debt Relief Act of 2007 are the following:

1. When debts are forgiven, it should be taxable because it becomes an income if it not settled. Under the Mortgage Debt Relief Act of 2007, a taxpayer can exclude up to $2 million debts forgiven on the main mortgage of the principal residence.

2. With a mortgage or foreclosure restructuring, whatever debt may be incurred can also be excluded into the taxable income.

3. Refinanced debts used for home purchase or improvements of the principal home may also be excluded.

4. In order to report all forgiven debts and all exclusions, these must be reported though filling up the IRS (Internal Revenue Service) Form 982 (or Reduction of Tax Attributes Due to Discharge of Indebtedness). This report is attached along with the federal income tax return for the tax year it is applicable for.

5. The proof of Cancellation of Debt or Form 1099-C from the lender is issued in a year-end statement. Usually it contains information like the fair market value on the foreclosed property and the amount of debt accrued.

Relief just as promised is what the Mortgage Debt Relief Act of 2007 provides. With such a limited time range of application, is there any relief forthcoming?

Government Credit Card Debt Relief – Credit Card Reform Act of 2009

Credit card debt, also referred to as revolving debt, is a kind of unsecured financial liability that is incurred through excessive, reckless use of credit cards.

Credit card debts are supposed to be settled monthly. But because of its availability, a lot of people are tempted to spend more than they can afford to pay in a month. The number of individuals suffering from credit card debt has been fast increasing in the recent years. As a matter of fact, credit card debt climbed to a record high of approximately $970 billion in 2008.

This explains why some so called “government credit card debt relief programs” have been very much in demand in the past few years.

Nearly all cardholders think that the government has some sort of superpowers that could erase their credit card debt. However, almost all people got some misleading information about this. Unfortunately, there isn’t any definitive credit card debt relief program offered by the federal government where all your debts get totally eliminated.

The Credit Card Reform Act of 2009, or also referred to as the Accountability Responsibility and Disclosure Act of 2009, is the only credit card debt relief program provided by the government.

The government allows credit card holders experience some debt relief through this law.

In the past, credit card companies can arbitrarily change the terms of their contracts even without any form of notice to their cardholders. But with the creation of the credit card law of 2009, credit card companies must give cardholders no less than 45 days notice before making amendments in the contract.

Furthermore, consumers are now given the right to refuse should they not agree with the proposed changes. The law likewise requires credit card companies to send the bills earlier, specifically three weeks in advance.

The Credit Card Reform Act of 2009 also protects cardholders from any arbitrary interest rate increases. Along with these, the law also requires creditors to prevent misleading terms and fine prints. This law demands that credit card companies follow the required minimum font size so that cardholders can easily read the terms.

Obviously, throwing oneself into the sea of debt is easy, but getting out of it when you’ve already sunk is hard. So in case you carry a credit card in your wallet, think before you spend so you won’t have to be on your knees with debt.