- One positive aspect of a national recession is the opportunity to catch up on your debt. Ironic as it may seem, there are options that creditors, banks and other debt collectors are willing to look at in order to secure any type of payment in a failing economy. One way to stay ahead of your debt is to not accrue any more during this time. This can be easier said than done.
- Fortunately, there is help within reach concerning your debt. With several debt relief programs already firmly in place, additional economic hardships brought out a plethora of additional and alternative assistance programs. Government assistance programs will typically offer assistance regarding housing and loan repayment. Alternate types of debt, such as student loans, may have additional relief programs in place. Consult the creditor for information.
Government assistance programs are not a "fresh start" debt resolution method, as a Chapter 7 bankruptcy might be; however, programs provided through government assistance can greatly increase the likelihood that you can steer clear of bankruptcy. Keeping your credit in good standing while chipping away at your debt is a great start. - As outlined on the Government Benefit website, "this is a new program for people at risk of losing their home due to default and foreclosure. The program provides new, 30-year, fixed rate mortgages that are insured by the Federal Housing Administration (FHA). Homeowners having difficulty paying their mortgages may be eligible to refinance into a mortgage that they can afford. Hope for Homeowners is voluntary and both lender(s) and homeowner(s) must agree to participate."
- For those looking to get into a first home and re-evaluate your finances, this program offers assistance. During one of the highest unemployment peaks in decades, even those that hold jobs are finding themselves underpaid. However, "if you are a law enforcement officer, firefighter, emergency medical technician, or teacher, this program may help you purchase a home in a HUD-revitalization area by offering qualified purchasers a 50 percent discount off the list price of homes available from HUD's inventory. You must agree to live in the home for three years and it must be your sole residence."
- The government site specified for benefits and assistance states that "the U.S. Small Business Administration (SBA) is responsible for providing affordable, timely and accessible financial assistance to nonprofits and businesses of all sizes located in a declared disaster area. Financial assistance is available in the form of low-interest, long-term loans for losses that are not fully covered by insurance or other recoveries."
SBA's disaster loans are the primary form of federal assistance for the repair and rebuilding of nonfarm, private sector disaster losses. The disaster loan program is the only form of SBA assistance not limited to small businesses.
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