Debt Articles Government

Government Help With Credit Card Debt

A question I am getting asked more and more is about what programs the government offers to help you get out of debt or to eliminate credit card debt. These questions usually involve inquiries about government grants and loans that people hear whispers about that they believe will dispose of problem debt as well.

Up until this point there has not been any interest or benefit to government to eliminate credit card debt through any sanctioned or legal process other than bankruptcy.

The elimination of debt seems like a public service that government could fill to help remove the weight of burdensome debt from the backs of consumers in trouble. But there is little logic behind the idea unless the government wanted to offer a bailout of consumer credit card debt in order to encourage consumers to resume their enthusiastic embrace of shopping and consumption.

Our capitalistic society operates in a symbiotic relationship between banks and consumers. Consumers consume, that drives orders, orders drive production and loans and credit cards help to fund both production and consumption.

The only remote connection between government and help to eliminate debt I guess would be the IRS recognition of non-profit credit counseling groups that offer debt management programs that make an attempt to assist consumers with problem debt.

Outside of that, let me be perfectly clear, the government, in particular the Office of the Comptroller of the Currency (OCC) actively blocks any government programs to eliminate debt. You can read more about recent efforts and blockage by the OCC here.

There are good reasons why the OCC blocks these attempts at consumer debt reduction since recently suggested plans have favored banks and have not been transparent to regulators and investors.

A government sponsored plan to eliminate debt and eliminate credit card debt could be crafted, I do see a way that it would be possible, but not only is there no such program but there is nothing on the drawing table as well, yet.

READ  Debt Settlement: Top Ten Most Misunderstood Facts

The good news is that I might be able to help you find an answer to your dilemma and help you get out of debt for free. It’s what I do here on the site. Just ask me your question and let me help you.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • I was in debt up to my eyebrows. I still owe on a house that’s upside down and a school loan. I went through the debt management companies and got ripped off. I went to a lawyer recommended by my favorite radio station jockey who also happens to be a lawyer and got taken for $3700 that I didn’t have in order to redo my house loan. I was late once in twelve months time on one credit card. My fico was averaged in the low to mid 800’s. I received letters from all my creditors raising my interest rates to 29%. I had 4 cards. Totalling about $53,000. I called the card companies to cancel them and pay them off. They refused to work with me and wanted all the money in one years time. I got angry, cursed them out and said to come and get me. Well,…they did. I wasted about $8000 on the laywer and debt management company. Finally, after several court visits and a sympathetic judge, I said screw it and called myself. I got $5000 taken off all of them except one which I was only able to drop off $300 due to the fact I already had a judgement against me.
    All are paid off except one. Before I could contact them, they forgave my debt and wrote it off. My tax guy said I was free and clear. My problem is that the card that was written off is still charging me as late on the interest. It’s still accumilating. I haven’t paid in at least 3 years. I live in California. And would like to know if i should call them and start paying or not. I really need a car…bad. i commute 1.5 hours each way 6 days a week to work. My crappy commuter is barely moving and will not be working for much longer. It needs an engine. I’ve replaced it twice already. The car wont last much longer . No one will give me a loan with the one card saying that I owe but from what I hear, they have to drop the bad debt on my credit report after 7 years of no payment. What ahould I do? I’m so over this whole mess and dont want any more credit debt!!! I hate credit cards. What should i do? My Rico right now is 640. Please help.

  • I’m 34 years old and the depression of being in credit card debt is overwhelming I feel like there’s no end to this hell I created! I’m self employed but there seems to never be enough money to get out of debt. I am trapped in a never ending hell…I can’t even afford a bankruptcy lawyer. Does anyone have any suggestions?

  • i was hurt at home, i fell down the stairs and cut my arm of 95% with a arm was hanging by the skin, and split my stomach open. when abulance arived at the house i was   pronounced dead on the seen. do to lose of 80% of blood. but on the way to the hospital they got a pulse,and i was in a coma for 6 days.and one month in the Hospital lucky to be alive today.but i lost my left arm, and went through 3 surgeries and have 4 more to go.but looks like there is no saveing my left arm.and they told me it could be 4 to 5 years recovery i owe lots of money to credit cards, and cant work or walk. i am on o.d.s.p after all my bills i have very little to live on. need ontario,government help to get out of this credit card dept, if there is any thing out there, if not i am in big trouble.after my rent,food,cell,close,hydro,and others. i have $200 to $300 a month to live on. not much but make there any government grants out there for people on o.d.s.p like who can realy use this kind of help. going  bankruptcy cost $2000 and other ways they want monthly payments of $300 to$400 a month witch i cant  afford .

  • welcome to BARCLAY LOAN SERVICE we offer loan to people on bad credit,home improvement loan, personal and business loan, student looking for financial help and to companies etc with a very low interest rate and with or without collateral. any interested one should contact us via email [email protected]

  • help people that are put out of work do to hit by a car,help pay home bills,can’t work any more .bad back pain, neck,hip,others pains  

  • They helped the big banks , why not help the people that has voted them in office an need help in their old age !!! Every thing is going up but my disability check!! What is a poor person to do ?

  • They helped the big banks , why not help the people that has voted them in office an need help in their old age !!! Every thing is going up but my disability check!! What is a poor person to do ?

  • I only vote yes because I believe the Gov’t owes us after spending all of our tax dollars to bail out these large corps and bank. I also want to end the Fed. Our country and the rest of the world has been dominated by this gang of thugs for too long. Thanks Woodrow Wilson for all of the death and poverty. We will rise up!!! Vote Ron Paul for president in 2012, and check out to educate yourself about the truth.

  • I only vote yes because I believe the Gov’t owes us after spending all of our tax dollars to bail out these large corps and bank. I also want to end the Fed. Our country and the rest of the world has been dominated by this gang of thugs for too long. Thanks Woodrow Wilson for all of the death and poverty. We will rise up!!! Vote Ron Paul for president in 2012, and check out to educate yourself about the truth.

  • I paid my credit card company $1000.00 online towards my balance on several occasions, and noticed that they held those payments, while continuing to charge me interest daily, until the due date. Is this practice legal?

    Thank you.

  • Hello,

    I just received another call today from a lady who wanted to use debt settlement to get out of debt. She informed me that she just saw an add on TV about a company telling people that a debt settlement program will use money from the Government to pay off your balances.

    This is not true so, if you see an add from a company telling you that you can use the governments money to pay of your debts then run the other direction. Debt settlement is not a program for people who can afford to pay of their debts but just want to have more money to purchase a new TV.

    It is a HARDSHIP program for people how can no longer afford to pay the minimum payments. You have to understand that anything other then paying you debts in full to your creditors will have a negative effect on your credit score.

    Unfortunately more Debt Settlement companies are trying to make their programs sound like an easy fix to get out of debt that more people are making their situations a lot worse.

    There is nothing about your situation that is easy so don’t think that getting out of debt is going to be a walk in the park. Take the time to research all of your options before you make any decision on what to do
    .-= Joe Sellers´s last blog ..Comment by =-.

  • Can you give me a phone number I do not have access to the internet at this time. Thank-you!

  • Here is my comment on debt. I think the Govt should pay off everyones credit card debt and or whatever, just like they did the big banks and auto industry. I don’t usually feel that govt should get involved in peoples lives to that extent but —- If they could do it for the other screw-ups, banks, auto industry, etc just think, if they paid off everyones debt, then people would have all kinds of money to put back into the economy to build it back up. LOL. In my opinion they should never have paid off banks and auto industry with our tax dollars. That’s one reason we don’t have any money we give it all out in taxes. When I retired I put 312.oo into a plan to continue to grown for me until I turned age 60. That was in 2003. So my money has been in there for going on 7 years now. Of course the govt has used my money. Anyhows, so far it has earned 112.00 in 7 years. I am now 60 and gonna draw it out. I was told that I owe Uncle Sam 20% of it for taxes. So what do I get for the last 7 years of them using my money, $27.00. That’s right, I’ve made $27.00 in 7 years, Uncle Sam made $85.00 and got to use my money to boot. I guess I got screwed, but screwing people is what the Govt does BEST!!!!!

    • Vivian, totally agree with you, I still don’t understand why the government helped those who screw up with the economy of USA. Well, I have to think they used the same sheets. If we try to understand some about it, I have to think who make decitions are millionaries(senator), so we will be the loosers.

  • My husband has a credit card of 14,000. dollars and we are trying to find out the best way to pay this off. His interest is 29%. We are paying huge amounts but it doesn’t do any good. What are your recomendations?

    • Hello Cathy,

      It is crazy when you think about the amount of interest you end up paying on a credit card. Each month you try to do everything possible to make the minimum payment but you don’t see any real decline in the principal balance. You could end up paying minimum payments for 40 years or more

      We are also being hit with a reduction in our line of credit which leads to other problems against our credit. You should review your options before you make any decision and consider the positive and negative effects it will have. When you get a chance you should check out the letter I sent to the credit card companies.

    • Every time you get an offer for a low rate promotion for 6, 12 months, jump on it. Apply a balance transfer of some of that 14,000 to the 0%, 3.99% or whatever it was and pay more every month on that till it’s paid off. Just make sure you pay that credit card off in the specified amount of time and don’t use the card for anything else. That should help you to start to drizzle down that $14,000. I was in debt for about $30,000 and this is how I did it. It’s amazing how quick you’ll get that card paid off, especially if you get several offers. Perhaps 4 low interest cards with 3 or 4 thousand on each.

  • I wrote my credit card company and asked for a payment plan because of no work the total of the card is just $300.00. So I ask for a payment plan, and closed the account. They wrote me back and said no can do. what can I do now? Help . Mary

  • Hello Steve,

    My name is Joe Sellers and I want to let you know you have a great site with good information. I speak to people everyday that are in debt and all to often they ask the question about the government assistance to pay off their debt. Sure, the government is going to tell you not to worry because we will pay off your debt for you.

    It will never happen but because of some of these companies trying to sell a list of agencies that will pay off your debt, people kind of lose common sense and want the quick fix.

    Unfortunately a lot of the debt settlement companies out there are doing the same thing and try to make it sound like they have this magical fix for any debt situation.

    When it comes down to it the is no magic wand because any decision that is made will have some downfall behind it. I have for years tried to explain that to my clients and still some individuals won’t listen and end up with one of these fast talking sales man you tells them what they want to hear.

    When you get a chance check out this letter I sent to the banks in regards to the bailout. I look forward to reading more of your articles and have a good day. Thanks Joe Sellers

    .-= Joe Sellers´s last blog ..We should be thanking the credit card companies for all that they have done for us over the years =-.

  • I was a part owner in a restaurante and now I am in debt for the Point of sale system. I owe about 15,000. Is there anything I can do that would help me reduce the payment or just a little help form the Gov’t. I lost my job in June, I am on unemployment and I am also taking care of my daughter full time.



  • the only way out is to build up your death benefit then make your death look like an accident. This will be my last step and I hope I don’t have to do it but the simple fact of the matter is that 1) I have no other recourse and I’m worth more dead than alive. LOL!!!

  • hello, My husband lost his job,I’m on medical leave,,I need government help,,To pay of my credit cards…tired of all the calls,,could you please point me in the right direction..Help pay off without applying to get half off from debt counsel…I need help paying these off,,can they sue us


  • I am 59 years old and dying from idiopathic pulmonary fibrosis. When diagnosed in 2003 I was only given 3-5 years to live. Obviously I have lived longer than they said I would. I am in credit card debt up to my eyeballs. I pay extra on all my credit cards each month, but am getting nowhere. They do no seem to decrease at all. I don’t know if it is because of the interest they charge or because they are taking my payments and applying them only to the interest. Additionally, I will see miscellaneous charges for things I did not order or for fees I have previously never seen. I need help!!! I would like to get this debt off my back, so maybe I could enjoy the last year of my life.

  • I have heard on the news to only use federally funded programs to help with debt relief /bill consolidation but have not been able to find any -I am in pennsylvania and just lost my job, I am married and have one daughter 6 years old and my wife is under medication and she is un employed and I cannot effort to buy her medicine as I will loose my health insurance because of laid off, Does anyone know who to contact?

  • I have heard on the news to only use federally funded programs to help with debt relief /bill consolidation but have not been able to find any -I am in Florida and just lost my job, single parent, 2 kids. Does anyone know who to contact?

  • We are getting a much needed wakeup call from the economy, both personally and as a nation. But if your situation is truly dire don’t count on government help. To protect what you have left of your assets you may need professional help from lawyers.

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