Federal debt relief programs have recently taken up centre stage in achieving debt relief. A federal debt relief program may be in the form of a grant from the government in the form of financial assistance. This newly launched stimulus program that has been begun by President Obama, is meant to provide some financial relief to those who have found themselves deeply in debt. Many might feel that there might be few options available to get away from the problem. The federal grant program known as Federal Grants Aimed at Debt Relief for Citizens is aimed directly at those who owe too much and cannot afford to repay it all. So the first step to avail these grants would be to qualify for the grant. Most of these grants focus on one thing- stimulating the economy. This means that one would be far more likely to get a grant if he or she can prove that their debt would negatively impact the economy. For example, a small business that may have to cut jobs or go out of business would be a prime target to receive the grant, and an immediate benefit to the business owner would be a low interest loan or completely free money to use to save the business.
 
Another federal debt relief program that one might find right now would be free credit counseling. This would be something that almost anybody would be eligible for, regardless of how their debt impacts the overall economy. The only requirement may be that the person has debt at all. This can be an excellent alternative for any family that might be considering bankruptcy or debt settlement, especially since the counseling offered is typically part of a government-funded non-profit organization. This means that there is likely a no profit to the organization that offers these services. The new Obama’s Credit card relief program too would be a good option to take to reduce the burden of credit card debts as this program may bring down about 50-60% of the interest charged.
 
Some of the reasons for seeking debt relief may be because of overuse of credit cards, payment of only minimum amounts for a debt thus increasing the interests charged and piling up of debt, mismanagement of finances, spending more than the earning, loss of job or downsizing in the job remuneration. The first step towards debt relief would therefore be to take a hard look at ones finances. It might be a good idea to draw up a list of one’s avenues of income and the individual expenses that cannot be avoided. It might also be a good idea to prioritize the expenses and debts. It would be better to keep the debt with the smallest outstanding on top of the list and start paying off the smaller debts before tackling the larger debts… Being on a budget might be difficult, but it would be beneficial in the long run. If sticking to a budget would be difficult, approaching a reliable debt relief services company for credit counseling by their credit counselors might prove to be beneficial.
 
Some of the popular debt relief options that may be prescribed might be going on a budget, credit counseling, debt consolidation or debt settlement. Budgeting might be difficult to stick with, but by far might be the best solution to get out of debt. The credit counselors at a debt services company would counsel the individual taking into consideration his or her financial status, debts and obligations before chalking out a plan of action. Usually these counselors have to be certified counselors. It would be advisable to check out the debt services company before availing any of their services. The next step might be consolidating all debts into one single debt by availing a debt consolidation loan that might have a comparatively lower interest rate to all the debts put together. This might be helpful as it would be easier to pay a single payment per month rather than multiple payments. The debt consolidation service would then pay the other creditors. Care must therefore be taken while selecting a debt services company by doing a research on the company and by being watchful of fraudsters. It might be a good idea to try and avail the government sponsored programs.

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