Deferral assistance program - Most major banks, including Citibank, Bank of America, Chase, Capital One, and others have launched an assistance program that will allow their customers to skip a payment or they put the monthly credit card bill on hold. It is a type of debt assistance program offered to help families and individuals of all backgrounds as well as incomes that are faced with a short term hardship, such as furlough, temporary reduction in income, or other challenge. Read more on monthly credit card deferment.
Federal government interest free loans, which are interest-free, deferred-payment loans may be available to small businesses. The money from the government can be used to pay mortgages, credit card bills, health care costs, and other expenses. Government loans are a great debt reduction option.
Debt management plans from Consumer Credit Counseling Services and other third party organizations exist that can help you find solutions to debt problems. They help with mortgages, loans from banks, credit cards, and much more. These not for profit credit counseling agencies offer a host of solutions, including debt management plans, assistance with negotiating, and information on other programs that may aid you. Consumer Credit Counseling Services are often free to use.
Free advice from credit counseling agencies is available. Several different organizations, all of which are non-profits, operate across the country. They offer debt help as well as other types of charitable assistance programs. A number of agencies operate regionally as well. They provide a number of low cost or free debt reduction programs, offer ways to improve credit scores, can advise on filing for bankruptcy, offer budgeting services, and in general provide information on ways to gain control of your bills. Find a listing of non-profit credit counseling agencies.
Union members and AFL-CIO debt management plan - Union Plus wants to remind members and organized labor that they offer a debt management plan to help members. Individuals are able to consolidate their bills at a lower interest rate, enter into payments plans, and otherwise pay down their bills as a form of debt assistance. They will also reimburse participants in this program (regardless of their income) some of the monthly fees that may be due. More on Union member debt consolidation..
Credit card modifications are becoming more common. For example, Bank of America is modifying the credit card terms of thousands of cardholders ever year to help them with getting out of debt, Chase is rewriting the terms of thousands of card agreements, and almost every other lender as well as bank offers some form of modifications. It is more possible than ever today to get out of debt with help from credit card issuers. Continue learning about credit card modifications.
Credit card hardship programs are also more widely available. Citibank, Bank of America, Discover Card, JP Morgan Chase, Capital One, GE Money Bank, and others offer consumers assistance with paying bills and their debts. There are many different versions of these credit card hardship programs, and each bank has their own take on it. They do not advertise these plans to customers, and there are certain steps that individuals need to take in order to apply for help. Find how to get help with paying credit card debt from a hardship program.
Most of the major banks and card issuers are more aggressively offering their own form of debt help as well as reduction or settlement plans for unpaid debt and bills. It is in their best interest to do this as well. Not only are they cutting out the middle man, but they will also receive at least some payments from the customer, rather than nothing. Find a list of credit card company settlement programs.
Many banks and credit card issuers, such as Bank of America, HSBC, Wells Fargo, and Capital One offer consumers their own debt management plans (DMP) as part of the Call to Action. This is a government supported debt assistance program that will reduce interest rates, eliminate fees, and help in other ways. It often involves some form of payment plan as well. Continue.
Credit card forbearance programs are offered by companies. Once again, the major lenders including Chase, Bank of America, Citibank, Discover Card, and others offer credit card forbearance programs that may allow consumers to delay monthly payments from six months to over a year. These programs may also lower interest rates, reduce a customer’s minimum monthly payment, or waive all fees.
The solution was really created by banks and lenders to provide consumers with more time to pay any bills they owe on. Credit card forbearance programs give a debtor time to get back on track, ranging from months to ever years.
Military credit and debt counseling is offered to active service members as part of the Military OneSource Program. The federal government created this debt help program in partnership with non-profits such as the National Foundation for Credit Counseling. Any member of the military, whether active duty or a reserve, may qualify for free advice and counseling. Clients can have a number of financial issues addressed, including excessive credit card or medical debts, sign up for budgeting workshops, credit repair and more. Read Military OneSource Program.
Help with payday loans
Salary advance or payday loans can be difficult for borrowers to pay off due to their high interest rates and associated fees. Some lenders also try to make the process more difficult as well. Find ways both eliminate and consolidate payday loans.
Borrowers also have protections from predatory lenders. Much of these is legal in nature. Many states and the federal government have created laws and rules that payday lenders need to follow. The regulations can cap interest rates, limit the number of times funds can be issued, and offer additional assistance. Read more on the payday laws in your state.
There are several steps you can take yourself to repair your credit scores, even if they are very low. Having a higher credit rating can lower the amount of interest you need to pay on your debts, it allows you to get approved to borrow money and improves the ability to take out more loans, such as an auto or mortgage. There are also other benefits. For example, a better credit score can even help you land a job. Find how to repair credit scores.
Summary of debt help programs
There are many solutions out there for households that are struggling to keep up. As listed above, there are debt assistance programs from lenders, banks, non-profit organizations, charities, and even the government. Whether it is a loan, a credit card company, or some other lender, they all try to offer some form of debt help to their customers as it benefits both the lender and the borrower. Read more on the programs and options above and apply for assistance.