Credit Card Debt Relief Government Program

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If you are the credit card holder, you should know government support in credit card. It will help you to optimize its usage. Do you know that government had made regulation about credit card debt for client? These are three primary components in that regulation, so let’s check the credit card debt relief government program and regulation.

Credit Card Debt Regulation

First is for earlier bill notices. This regulation aims to control credit card companies and also protect card users. You, as client, have due to deny contract change. But remember, if you deny contract change, you must pay five years maximum contract.

Next, there is also bigger reminder to clients that credit card companies must send a payment declaration to client by post three weeks before due date. This regulation aims to avoid client to pay your credit card debt lately.

And the last is limited interest rate. if you are success to pay the payment in 60 day period, credit card company doesn’t have to increase interest rate in client’s balance. This regulation is to protect client from company that boosts the interest rate suddenly in the middle of paying plan.

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Well, if we talk about credit card debt relief government program, we know that government had already made some programs. The first one is Debt Management Program. Companies must serve debt management program which is licensed by client protection authority. The second one is Debt Fulfillment Program. You will be offered by two kinds of debt fulfillment program. There is debt fulfillment by paying off the debt with some money directly or saving some money to pay off the debt. However, the debt fulfillment by paying it off with money directly is a risky way because 90% people that use this way usually fails to finish their debt.

The third option is Bankruptcy Program. The goal of this program is to free you from your debt and creditor’s law process will be stopped. Nevertheless, this is the worst way you can do to your credit. Therefore, think carefully before choosing this program. Next is Client Proposal Program. With this credit card debt relief government program, you can propose a proposal for creditors to increase the debt fulfillment’s time, decrease debt amount, or do both of them. This proposal is arranged under the regulation of Bankruptcy and Insolvency.

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As a credit card user, you also should know about two bankruptcy types that you can propose to court, such as Chapter 13 and Chapter 7. You can use chapter 7 if your income is less than average income level in your state. In addition, you can also use chapter 13 if you have a plan to repay the partial debt. However, in chapter 13, your credit score can be broken for seven years.

Credit card debt relief government program has some benefits like it can save your money because the interest rate is limited. You will not pay the credit card lately because you will be reminded about credit card payment. It will decrease the debt stress as you will plan card payment and use your credit card as efficient as possible.