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.

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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 .

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  • 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  

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