debt relief Archives - Everday Resources

The Eviction Ban is Over

Even while the federal moratorium was in effect, the eviction prohibition was not standard across the board. The moratorium was not enacted in every state in the United States. And not all tenants were aware of the order or how to benefit from it. Therefore, it didn’t reach as many people as it should have.

Although the federal eviction moratorium is no longer in effect, if you have been unable to pay your rent or your utilities due to the epidemic and are facing eviction, you may be eligible for a personal government bailout.

Rent Help Still Remains

Despite the Supreme Court’s decision to overturn the federal eviction moratorium, another program remains. A first-of-its-kind, $47 billion government rental assistance program, which covers energy bills and up to 18 months of rent for tenants who have been unable to pay due to the pandemic’s financial effects, is still in place.

The federal program has been hampered by regulations and rules and red tape and has been far too slow to get off the ground since its creation last year, but authorities are working to make it simpler for hard-hit tenants and landlords to collect money they are entitled to. There are many tools available to assist individuals in determining where and how to apply.

How to Get Rent Help

The Consumer Financial Protection Bureau has built a website where people may input their location. This way they can get contact information for the local organization that administers the assistance in their area.

Another website, run by the nonprofit National Low Income Housing Coalition, provides details on the 493 state and local agencies that distribute the aid, including which agencies allow renters to simply state that the pandemic has caused them financial hardship and that they have lost income, or that they meet other eligibility requirements. Applicants in certain states are required to provide papers. This includes leases and pay stubs to establish that they fit the criteria.

According to existing rules, roughly 750,000 individuals will be evicted throughout the country before the end of the year.

Conclusion

The rental aid program is the last remaining enormous protection for American renters now that the larger eviction ban is over. And many of the remaining state eviction bans are supposed to end by September. With evictions allowed to resume in an estimated 90% of the country by October, the need for financial help to millions is needed just as much now as before.

If the present rate of rental aid distribution continues, 1 million to 2 million families will be behind on their rent and without help by the time the remaining state eviction moratoriums expire.

Thankfully, the federal assistance program exists- although many people don’t know of it. People are calling on the federal government to do even more. They want them to assist people but so far there are no plans in Congress for such help.

The early 21st century has found an increase in the debt of individuals in developed, First World countries mostly as a direct result of the American economic recession around 2008. Personal debt rose from $2.71 trillion in 2008 to $3.76 trillion in 2017. Therefore, if you’re one of the many that have some form of personal debt, know that there are means to get help.

There are a lot of different versions of debt depending on who you are and what you owe. In this context, we’re referring to an individual’s debt. The early 21st century has found an increase in the debt of individuals in developed, First World countries mostly as a direct result of the American economic recession around 2008.

Management

Managing debt is where most people have to start. This all comes down to working out a budget plan. Unfortunately, this plan only works best on unsecured debt, like credit cards, personal loans and overdraft fees. The credit counseling and debt management companies can negotiate with the unsecured debt lenders to reduce the total owed or monthly payments, which can be a massive help if you’re living paycheck to paycheck.

There are a lot of different ways to look at debt management, because it basically includes all of the other strategies in one package. Managing the debt begins at the source, with you, and on how you plan to spend your money while making ends meet. Creating a budget plan as early as possible will help you get started with handling debt.

Consolidation

Debt consolidation is one of the first and smartest avenues to seeking out debt relief. If you’re in debt from a few different bills with high interest rates, like multiple loans or a few credit cards, it’s possible to consolidate all of the bills into one lower-interest loan. This option both reduces your overall debt and makes it faster to pay off.

Consolidation isn’t a magic cure-all and won’t work if you’re unwilling to stick to a budget. If the debt is less than 50 percent of your income, your credit isn’t enough to qualify for a zero percent credit card or you’re unable to consistently cover payments, consolidation may not be the best option. Of course, speaking with banks, credit unions, or other loaners may give you a better idea of how to reach consolidation with your personal situation.

Debt Settlement

Debt settlement is risky business. While this means that you can pay less than the original amount owed without fear, this option is still basically a last resort. Debt settlements can ruin your credit and be extremely expensive to reach, not to mention taking years to even establish.

The only way you can be eligible for a settlement is if you’re unable to pay any amount on your debt. Collectors will be willing to take some amount of money rather than nothing but at a strong cost to you. This is only applicable with some types of debt, as houses can be foreclosed and cars repossessed, but debt like student loans can be settled. Options like income-based repayment plans should be considered before deciding on debt settlements.

Tax Debt Relief

Tax debt is a bit different from your average debt. This is money owed to the IRS and can be serious stressor, especially if you have debt accruing from previous years. Every month tax debt is unpaid adds a 0.5 percent interest penalty, so things can add up fast. The IRS even has the power to put a lien or levy on your property, meaning they can take the proceeds if you sell or just take the property and sell it themselves.

There are a lot of companies out there and a lot of scams who say they’ll help you get out of tax debt. One of the best steps that can be made is to speak to a worker at the IRS directly to set up a payment plan. There will be penalties and interest to come with the plan but these are better than not paying at all. You can also seek out an office in compromise or OIC, which is similar to a debt settlement as it’s a way to reduce your payment if you can’t repay at all. As with the settlement option, the IRS suggests you try all payment plan options before considering the OIC.

Getting out of Debt

The idea of debt has been around since ancient historical times, even mentioned in the Book of Leviticus. So long as economy and debt has been around, so has debt forgiveness. Anyone can reach debt relief, but the stress coming with the trouble is a different problem.