Are you looking for a way out of credit card or student loan debt? You’re not alone. As of the fourth quarter of 2023, Americans have collectively reached $1.129 trillion in credit card debt, according to LendingTree.
That number may be hard to fathom, but there are options that can help people move in the right direction. Let’s look at the options together so you can make an informed decision.
The Federal Government
Debt has become a concern for many Americans. It’s not just about the financial strain — it’s also about the stress and constant worry of making ends meet.
Federal Grants
The government does not offer free money or grants to people for personal needs. Learn how to report “free money” scams and find government benefits or loans to help with expenses.
Grants.gov – not for individuals or personal expenses; typically only for organizations working with government-funded programs and projects
https://www.usa.gov/no-free-money
Federal Loans (Not Active)
The government’s Federal Family Education Loan (FFEL) is a debt consolidation loan often used for student debt. However, it can also help with credit card debt.
For a deeper dive into the FFEL, take a look at this comprehensive guide called “What to Know About Federal Family Education Loan (FFEL) Program Loans.”
The FFEL Program ended July 1, 2010. But you may still have a FFEL Program loan if you were attending school before that date.
https://studentaid.gov/articles/what-to-know-about-ffel-loans
Private Lenders: The Other Side of the Coin
Private lenders, like banks and credit unions, bring their own set of advantages to the table. They operate independently of the government, so they have the flexibility to design loan products that meet the demands of specific markets.
That means a wider variety of loan options, competitive interest rates and sometimes perks such as cash back or reward points.
Banks
These are the big players in the lending world. With their vast resources, banks can offer a full menu of loan products, from personal loans to home equity lines of credit.
Credit Unions
Credit unions are member-owned, which means they often prioritize the needs of their members over profits.
Online Lenders
The digital age has given rise to a new breed of lenders that operate primarily online. These lenders use technology to offer quick loan approvals and payouts.
Regardless of the type of private lender you choose, it’s important to shop around. Compare interest rates, fees, and terms, and read customer reviews. Taking a loan is a significant commitment and you want to partner with a lender that understands your needs and offers terms that align with your financial situation.
Remember, you’re not alone in this journey. Whether you lean on government programs or private lenders, there’s hope. Consult an expert, weigh your options and choose the path that works best for you.
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