For a number of reasons, the average personal debt levels have hit all-time highs in recent years. These reasons include: the relative ease at which one can obtain credit either through credit cards, second mortgages, or lines of credits based on one’s current home equity; a worsening economy resulting in numerous job losses, lay-offs, and cutbacks; and a society that has become obsessed with consumption resulting in many people living well outside of their means. These factors when combined have caused disastrous effects for a number of people.
Fortunately, there are many options out there for people dealing with the burden of massive debt. Two great options for people looking to free themselves of debt, or at the very least lower their debt, are government debt relief programs and IRS tax debt relief.
What are Government Debt Relief Programs and IRS Tax Debt Relief?
There are two forms of government debt relief programs (in addition to IRS tax debt relief) available to U.S. citizens. First, for recently graduated students suffering from loads of student debt, there are government debt relief programs out there that will help. These types of government debt relief programs come in the form of lower interest rates and more manageable repayment terms. This can greatly ease the burden of your debt load and help you get back on track – especially as you try to work your way up in the workforce after graduation.
The second form of government debt relief programs available is a government mortgage grant. These government debt relief programs assist you in negotiating with your mortgage lender (most often a bank) a better interest rate and more manageable repayment options. As can be seen, both of these government debt relief programs are similar and help those in need.
In addition to the above government debt relief programs there are IRS tax debt relief programs available to those struggling to pay back their taxes. There are essentially five ways in which the IRS tax debt relief program works. These include:
- IRS Tax Debt Relief through an Installment Plan: One of the ways in which you may be entitled to pay off your IRS taxes is through an installment plan. Basically the IRS will allow you to make payments over a long term at a negotiated monthly rate.
- IRS Tax Debt Relief through a Partial Payment Agreement: This form of IRS tax debt relief is similar to the installment plan above except that you will only be required to pay back a partial amount of your taxes owing.
- IRS Tax Debt Relief through a Compromise: In this IRS tax debt relief situation, the IRS may allow you to pay only a portion of your taxes so long as you pay it in a lump sum, or over a short-term duration.
- IRS Tax Debt Relief through Deferral: This IRS tax debt relief is essentially a deferral on your taxes you currently owe. You’ll still have to pay them back, but you may be allowed to wait a year or more to do so.
- IRS Tax Debt Relief through Filing Bankruptcy: This IRS tax debt relief method should be used in only the direst conditions. You’ll need to file for bankruptcy which will hurt your credit rating for at least 7 years.
How do Government Debt Relief Programs and IRS Tax Debt Relief Work?
The idea behind government debt relief programs and the IRS tax debt relief benefit is fairly simple. First, the government or loan agency will look at your current income. Based on this income they will determine how much you are able to pay per month on your debt and work around this amount. Although this can be a long and slow process for recovering from debt, it can be very beneficial for both you and your credit rating.
Government debt relief programs and IRS tax debt relief are there to help those who need it most. If you’re from a low income family and are struggling to make ends meet, it would be highly beneficial to contact someone who can help. There are a number of companies out there who will help negotiate the lending terms on your behalf and will help ensure you get the best rates possible.
Who is Entitled to Government Debt Relief Programs and IRS Tax Debt Relief?
Not everyone is eligible for the government debt relief programs and often times how you ended up in debt will affect your eligibility. As mentioned, if you’re a student who has recently graduated and is struggling to pay back student debt, you’ll likely be eligible for government debt relief programs. In addition, if you’re unable to pay back your taxes, the IRS tax debt relief program may be for you.
If you belong to a low income family that is based on the average household income in your state, you’ll likely be eligible for government debt relief programs and the IRS tax debt relief. Debt can be stressful, especially if you’re living below the poverty line. These government debt relief programs are there to help you get back on your feet.
The Benefits of Government Debt Relief Programs and IRS Tax Debt Relief
There are a number of benefits to applying for government debt relief programs. First and foremost, these programs will help lower the monthly payments on your existing debt. This can go a long way in ensuring you’ll have enough money each month to pay for food, utilities, and other necessities.
Another important benefit of government debt relief programs is that it enables you to get out of debt faster. Often one of the most debilitating factors involving debt is the interest rates. Combating the interest rates is often an uphill battle and is often what people struggle with most. Fortunately, government debt relief programs take this into account and ensure you get the lowest interest rate possible.
Lastly, just knowing you’re doing something that will help you get yourself out of debt can be a great benefit. Not only will it lower stress but it will give you hope towards a debt free future. Take action today and you’ll be well on your way to lowering your debt.