No, there aren’t any government programs to help you pay off credit card debt. The CARD Act does place restrictions on credit card companies that make it easier to pay off credit cards, and the bankruptcy process can get rid of credit card debt, but the government doesn’t normally assist with managing credit card debt. For that, you’ll need to find a private credit counselor, and you can start by viewing the U.S. Department of Justice’s approved list.
In addition, the government offers public assistance programs for families experiencing financial difficulties, like SNAP to help cover food and TANF, which provides cash assistance to families with children. There are also loans and grants available to help with housing and with certain emergencies.
While there isn’t a government program that can help with credit card debt directly, there are several other financial products, services and strategies that can assist you in getting out of debt.
Tips for Paying Off Credit Card Debt
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Prioritize your debts.
If you’re behind on any of your cards, you should get caught up as soon as possible, and be sure that you always pay at least the minimum amount due on each of your cards. This will prevent credit score damage.
To minimize the cost, make the biggest monthly payment you can manage on the account with the highest interest rate and pay the minimum on your other balances. Do this each month until that card is paid off in full, then repeat the process with your next most expensive debt.
It's best to deal with debt as quickly as possible, whether by managing it on your own or with the help of a credit counseling agency.
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Use a balance transfer card.
Another tool that can help you manage debt on your own is a balance transfer credit card. These cards usually require at least good credit to qualify, but they offer a 0% intro APR on transfers. You can use a balance transfer calculator to see how much one of these cards could save you.
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Get a debt consolidation loan.
A debt consolidation loan is another way to lower your interest charges and simplify the repayment process, helping you combine multiple debts into a single loan. However, it won’t reduce the amount that you owe, and you aren’t guaranteed to get a lower rate.
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Reach a debt settlement agreement.
If you’ve defaulted on a credit card and are unable to pay off the full amount that you owe, your issuer may accept a lower payment from you and forgive the rest. Debt settlement won’t always work, and it will hurt your credit to default on an account, but it can save you money and help you avoid legal trouble.
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Negotiate a payment plan.
You may be able to arrange a debt management plan, either with your issuer directly or with a credit counseling agency. Unlike debt settlement, debt management won’t really lower the amount you owe, but it is usually achieved by lengthening the payment period, lowering the interest rate, or waiving certain fees.
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Consider bankruptcy as a last resort.
Declaring bankruptcy will cause all or part of your debt to be forgiven. However, it can still be expensive due to attorney’s fees and filing charges, and it will hurt your credit score significantly.
For more tips, you can read WalletHub’s guide to paying off credit card debt.
This answer was first published on 02/20/24. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
