Government programs are available to help regular people obtain credit card debt relief. The personal financial hardships millions of citizens face has finally been recognized by the US government. Millions of Americans have admitted they do not pay their bills on time, according to the National Foundation for Credit Counseling, 2009 Financial Literacy Survey. This has led to more people applying for and receiving revolving credit lines. Get out from under credit card debt by utilizing government programs.
The Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act is a law that regulates how and when a debt collector can contact the debtor. Credit card debt collectors are bound by these rules, as well. A collector may only call between the hours of 8 a.m. and 9 p.m. The Act also stipulates the collector cannot call people at their places of employment if they know the employer doesn't approve of calls on the job. The FDCP protects consumers against harassment, lies or other unfair practices in any attempts to collect debts. Honor written request to stop contacting the debtor.
What to do:
- If a collector calls the workplace- tell them the employer does not approve of calls on the job. Tell them to place a note on the record indicating no phone calls at work. Ask for the collector's badge or id number. Write the number down in case another call comes in then tell them the date, time and id of the collector who was to note the file.
- If the debtor does not want to be contacted by the collector - write a letter to the company and specifically tell them to stop all attempts to contact.
U.S. Cooperative Extension Service
The United States Cooperative Extension Service offers nonprofit credit counseling. This agency can help reduce or eliminate credit card debt. Credit counseling organizations can help manage money and debts, help plan a budge and offer free educational material along with workshops. Credit counselors must be certified and trained in consumer credit, money and personal debt management.
The counselors are there to discuss the entire financial situation with the consumer and personalize a plan that fits the consumers needs. The first session usually takes about an hour. Continuing support is available through follow-up sessions.
Personal Bankruptcy
People that have a lot of credit cards or other debt may need to utilize Chapter 7 or Chapter 13 bankruptcy. Although this is generally seen as a method of last resort it is necessary sometimes. Many good people have made the decision to go through this when all other options are closed.
Chapter 7 is considered straight bankruptcy and all assets are involved. There are a few exemptions such as cars, work tools and basic household items. Some property is sold by the courts and the money is turned over to the creditors. People can file Chapter 7 bankruptcy eight years after the first one is discharged.
Chapter 13 bankruptcy has a waiting period of only two years. Under this plan people, with a steady income can keep their property as long as they make court approved repayments. This repayment plan will be three to five years in length. Once all the payments are made the debts are discharged.
Get Out of Credit Card Debt
Many people have found themselves in economic and financial hardships. Get stress relief by getting credit card debt relief with the help of one of these government programs.
Reference: Knee Deep in Debt
Jennifer Terry - Jennifer Terry has worked to promote self-determination and consumer education for 10 years. She has been writing since 2004 and has been ...
