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Government Handing Out Secret Bailout Money to Pay Off Credit Card Debts

This information is for all the people who keep emailing me about the “secret Obama backed bailout plan for free government money to pay off credit card debts.” You win and I’ll tell all.

I’m not sure who let this rumor out of the bag but if I find them I’d have a very stern talk with them.

Maybe the problem is that while people keep reading the news about large companies getting billions of dollars in bailout money, they assume that there is free money waiting for them.

I’m the first to agree that if we want to quickly stimulate a consumer based economy to drive people back into the stores to shop, spend and buy, that paying off consumer credit card accounts is a good way in the short run to do just that.

The only similar thing I can remember is a Kuwaiti government plan to pay off consumer debts.

I hope this is the last time that I have to write about these alleged programs that do not exist. There is no free money or government money that is being given away to pay off consumer debts or credit card accounts.

The only pseudo free money available in government money would be one of the government grants that are available. Once you take a look at the available government grants that are hyped as free money you’ll see what is really available.

I’ll never say never but I would seriously doubt that the U.S. government is ever going to give away free money with no strings attached to let the average person pay off their bills. And if they do, and I’m wrong, the first round is on me.

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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.

10 Comments

  • No there is not a Government backed credit card debt relief program. Unfortunately there are many companies touting or suggesting just that. However, there is a free market bailout solution. You can negotiate directly with your creditors. You can do this on your own if you have the time and experience, or you can hire a licensed and approved company to do this for you.

    Reducing your debt by negotiating it with your creditor is a way to take advantage of a hardship program, but it is not a hand out from the Government.
    This practice has been going on for nearly 20 years, but has accelerated in the last 15 due to high consumer credit card debt… and unethical practices by credit card companies.

    Our hope is that consumers take advantage of these hard times by ridding themselves of credit card debt and start on a cash only lifestyle. It does not matter how it is done, through paying down debt, using a hardship when appropriate, or even filing for bankruptcy when that is deemed the only solution by a professional. This is not only good for the consumer but good for our economy in the long run.

    Credit card offers are returning to direct mail, on TV and in some very odd places; like Fidelity Investments offering AMEX cards. Turn your nose up to those “perks” no matter how tempting the perks look to be.

  • Whatever happened to accountability??? If I borrow money or use a credit card, then I am responsible for that debt. That is the problem with America, everybody expects something for nothing. The “if we get into trouble, the government should bail us out” (this goes for corporations as well as individuals)mentality is the new paradigm in this country, and it needs to stop if we are to ever recover.

    • I agree with accountability. However, the help we need is in the form of Usury (spelling?) laws to be enacted to protect the individual from excess charges and unreasonable interest. I get maybe 4 cents of interest on my checking accounts, but banks/credit cards charge 20% to 30% in interest. Those of us who have had employment problems (I recently had to stop working and have no income) should be from excess fines, etc. A person should be able to declare that they will no longer use the card (and close the account). Interest should be frozen, payment amounts more flexible–all with the goal to pay off the debt and not incur more. I have 2 credit cards — unused for 3 years on which I’m am paying over $150 in interest every month (19.9%). The response I got was we will charge you 29% interest plus late fees, etc. I think credit card companies should be forced to work with the individual to pay off the debt in a reasonable time. I do not think they should be allowed to raise interest rates. The company must work with the person. I want to be accountable, but there is no help from anyone. We no longer use credit cards, but my $2,000 balance is now reaching $4,000 on 1 account. I’d like to see Obama call the credit companies to be responsible.

  • I think you are right, the goverment needs to help the american people not the banks. I would be happy if they would demand all debt shown on a credit report be written off other then maybe your morgage.

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