Digital News Report – The government has various programs set up to help borrowers deal with their debt obligations. The government can’t pay off your credit cards but they can offer assistance in the form of grants, advice, loan modifications and counseling.
The federal trade commission provides advice to debtors. In their “Knee Deep In Debt” pages they tell readers to develop a budget. They call this the first step toward taking control of your financial situation. They also recommend contacting your creditor if you know you will be late on a bill.
If you are not disciplined enough to create a workable budget and stick to it, the government recommends contacting a credit counselor. The FTC says that many credit counseling organizations are nonprofit. They warn that just because a company says they are non-profit doesn’t mean they are.
They also provide services similar to counseling services at mymoney.gov. Their free website can help with budgets, mortgages and other financial problems.
The Obama loan modification program has been set up to help homeowners deal with mortgage payments. The program is designed to help borrowers deal with the banks to modify their loans. The service is free.
The government also provides grants to help Americans in financial trouble. Counties around the nation provide assistance in the form of social services. Besides food stamps the counties provide money grants. In many cases this money does not need to be paid back.
By: Tina Brown