How to Get Help From the Government to Pay Your Credit Cards

You can get help from the government to pay your credit cards -- but don't expect any direct payments. Nonprofit credit counselors certified by the U.S. Department of Housing and Urban Development can offer free advice and guidance for paying your credit card bills. The counselors can show you how to legally and ethically pay your credit card bills while improving your credit. That may not be quite as satisfying as a pure credit card bailout, which was rejected in 2008 by the U.S. Office of the Comptroller of the Currency. The agency rejected a proposal to allow as much as 40 percent of credit card debt to be forgiven through tax writeoffs.

Instructions

1

Gather the billing statements for your credit cards.

2

Make an appointment with a government-certified credit counselor. Find a counselor in your area by checking the HUD website.

3

Talk to the counselor about your problems paying your credit card bills. The counselors provide free advice on negotiating with your card companies for lower monthly payments, reduced interest rates and more. For a monthly fee, the counselors can also take complete control of your credit card debt. Through a debt management plan, the counselors will personally contact all of your lenders and set up payment programs designed to eliminate your credit card debt in about four years. You will be asked to commit to the program and make a lump sum payment to the counseling agency each month to cover minimum payments and a management fee. The agency will then pay your creditors, with a goal of saving you money over the long-term on reduced finance charges and the waiver of some fees by the lender.