Legal Debt Elimination: A Government-Aided Shortcut to a Debt-Free Life

The rule of banks and credit card companies, which were almost unregulated before in terms of what they charge consumers, has come to an end. Government finally has good news to consumers, especially to the ones that are struggling with intolerable debt payments. There have been stricter laws introduced regulating lending markets aimed to protect consumer rights. Additionally, several debt relief programs were implemented to assist struggling borrowers in reducing their debt burden.Legal Debt Elimination Is Allowed With New Legislative ChangesLaws that have recently passed in U.S. Senate impose more restrictions on credit card issuers in terms of interest charges and borrowing costs incurred by consumers. They are of great assistance to people that were thinking of filing bankruptcy as the only relief from the growing monthly debt payments. Such laws call for removal of certain charges and fees imposed by credit-granting institutions and set new standards of credit card lending. With proper utilization, they would allow millions of people to legally erase or significantly reduce some debts without need for repayment.Credit Card Accountability and Disclosure ActA Credit Card Accountability and Disclosure Act enabled protection of consumers against hidden charges and fees imposed by banks and credit card companies. It would allow for reevaluation of the amounts owed and removal of some debt portions that were accumulated due to hidden charges. A Credit Card Accountability and Disclosure Act is predicted to reduce existing credit card debt in the years to come by legally erasing certain portions of debt.Fraud Enforcement Recovery ActA Fraud Enforcement Recovery Act is another example of governmental assistance. It gives the Department of Justice more tools to prosecute fraud in lending industry to include credit cards, mortgages, and commodities. It allows for effective control and prevention of consumer rights violations in financial industry.Hope for Homeowners ProgramHope for Homeowners, another government-sponsored program, is aimed to assist homeowners struggling with high mortgage payments. It works using write downs of certain balances and interest rate reduction, resulting in lower monthly payments and higher equity. Millions of U.S. households qualify for debt reduction benefits under this program.Government Assistance Is Not a Money GiveawayAbove programs and legislative act are great, but are in no way aimed as a free money giveaway, like some are trying to portray. They provide for financial assistance to consumers with large amounts of debt and impose further restrictions on banking industry to avoid discrimination practices of borrowers. When properly understood, they may serve to your advantage, lessening the amount of debt you have and allowing for better, more affordable debt management.Online Resources Are At Your DisposalThere are plenty of resources available online that provide detailed information about governmental assistance with debt elimination and management. Such websites may also offer easy-to-understand explanations of how such debt assistance programs may benefit in certain cases, or even offer online consultations for interested individuals for a nominal fee, or even free of charge. Also, make sure you check government websites, as they give firsthand information and updates on all debt assistance programs.