How to Find Loans and Credit Card Help for People With Bad Credit

Government help with loans and credit cards for consumers with damaged credit are hot topics of discussion these days. There are few people who do not face financial problems at some time in their lives.

Usually it’s a short term cash flow problem, a temporary job loss or a medical emergency that causes an inability to pay bills on time. Family issues such as divorce are often cited as reasons for financial woes.

Today, there are people needing financial help from government who have never before had financial problems. The struggling economy has led to a tight money market.

Banks are not willing to lend money for homes or cars or even small personal loans to consumers who have damaged credit ratings.

High unemployment rates and falling home values have put consumers in a financial crunch and have damaged credit files for tens of thousands of people.

Government Loans and Scam Sites

There are many government loans and grants available to help buy a home, refinance a mortgage and provide money for small businesses and minority owned businesses.

The government does not have a fund to pay off your credit card debt nor does it loan money for that purpose.

When you think about it, this makes sense. The government operates on money paid by taxpayers. Clearly, it would not make sense for government agencies to provide money to pay off bad credit debt when it is other taxpaying consumers who would be paying in the end.

Many believe there are government loans that can be used to pay off debt because of the high number of websites that advertise they can help you obtain financial funds from government.

The only real information about government grants and loans that you can count on is the information posted on .gov websites and in government publications.

The government does help by providing oversight of debt counseling services and by underwriting some mortgage programs that are meant to provide loans to those who do not qualify for standard home loans.

At times, there are also government grants available for first time home buyers and for those who improve their current residence with the addition of energy efficient appliances and remodeling.

Government Loans Available

Government help may not be programs to provide you with money to pay off your credit cards and loans. However, there are many assistance programs and grants that can relieve financial stress and free up funds you may be spending elsewhere.

Housing programs have been a major focus of the government in the past few years. With a foreclosure rate that has risen consistently for several years, the government has established programs to help people with bad debt refinance their homes.

Every dollar you save on food or housing through government assistance is a dollar you will be able to pay toward credit card debt.

Passage of new credit card lending regulations is not government loans but provides credit card help for those with bad credit.

It is through the government that you have the ability to declare personal bankruptcy. If you are burdened with credit card debt you have no ability to pay, filing bankruptcy can totally discharge that debt. It will harm your credit rating for up to ten years but it will wipe off that debt and stop harassment of creditors.


Financial help from government are not checks you can use to pay off your debt. However, government help is available to prevent predatory credit lending practices and to provide financial resources for food, housing and medical care.

If debt is overwhelming, the government provides you with the right to file personal bankruptcy and totally eliminate the credit card debt you owe.