Government Measures For Credit Card Debt Relief

Government Measures For Credit Card Debt Relief

According to the 2010 reports of the US census bureau, US citizens have more than $886 billion in credit card debt. This figure was expected to reach $1.177 billion by the end of 2010. The situation is getting worse due to the economic downturn, which has resulted in pay cuts and wide scale unemployment. In the current economic scenario, people have started looking at the government for credit card debt relief. The administration has taken several measures to help consumers with their credit card debt. Credit Card Debt Relief: Government Assistance Here are few measures taken by the government to provide credit card debt relief: Statutory Provisions: The government has enacted the Credit Card Accountability Responsibility and Disclosure Act of 2009 or Credit CARD Act of 2009 to regulate the operations of credit card companies. According to the new law, credit card companies cannot modify their interest rates without informing the consumers. They have to give a notice of a minimum of 45 days before making any changes in the existing interest rates. Moreover, the Act allows a consumer to cancel his credit card, if the credit card company hikes the interest rates. The law also stipulates that credit card companies have to send billing statements to consumers a minimum of 21 days in advance. Further, it restricts a card company from charging over-the-limit fees. Government Program: The government implemented the Obama Credit Card Debt Relief Program in 2009 to deal with mounting credit card debt. According to the program, if you have more than $10,000 in unsecured debt and no means to pay it back, you can qualify for debt erasure and get your debt erased. Government Grants: Every year the government spends billions of dollars to help people who cannot pay back their credit card debt. Federal grants for credit card debt intend to save defaulters from drowning deeper into loans and help them to sustain their credit scores and ratings. However, there are certain eligibility criteria for government grants. To be eligible for government grants, you need to produce a statement confirming your outstanding debts. Also, you need to provide an income proof document, to prove that you do not have the finances to pay off your debt. Your application is then scrutinized by government officials. The application is approved, if all the requirements are met.

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