Seniors may be able to get their payments lowered if the debt is federal or PLUS. Try options such as an income-based repayment plan or a discharge. Deferment, forbearance or consolidation may be possible.
Also know, are banks forgiving credit card debt?
Most credit card companies are unlikely to forgive all your credit card debt, but they do occasionally accept a smaller amount in settlement of the balance due and forgive the rest. The credit card company might write off your debt, but this doesn’t get rid of the debt—it’s often sold to a collector.
Furthermore, can Social Security be garnished for credit card debt?
For most types of debt, including credit cards, medical bills, and personal loans, Social Security cannot be garnished to pay the debt. If you owe money to a creditor, the creditor can go to court and get an order to take money from your bank account.
How do I ask for debt forgiveness?
Write a formal letter explaining why you’re in the current financial situation you’re in. Talk about the job loss, divorce or other tragic life event that caused the financial crisis. Towards the end of the letter, ask for forgiveness or settlement of your debts.
There is no government program that forgives or even minimizes the burden of paying off your credit card balances. There are, however, 501(c)3 nonprofit consumer credit counseling services that work with you to provide debt relief. These agencies are funded through grants from credit card companies.
Fortunately, there are over 2,500 federal, state, and private benefits programs that provide financial help for seniors. They cover over a dozen categories including medication, health care, income assistance, food, housing, and transportation.
Top 10 Government Resources for Seniors and Caregivers
- Medicare. …
- Supplemental Security Income. …
- The Administration on Aging (AoA) …
- Department of Veterans Affairs (VA) …
- The Health Insurance Portability and Accountability Act (HIPAA) …
- The Americans with Disabilities Act National Network. …
- The National Institutes of Health (NIH)
So what is considered low income for a senior citizen? According to the Federal government guidelines, a low-income senior is defined as any individual who has attained the age of 60 and has an income of less than $30,000 a year, which equates to about $2,450 a month, or about $80 a day.
Congress has passed laws to protect Social Security so it can’t be garnished or taken from seniors. … So, seniors’ income is protected by various laws, and if they don’t pay their debt, or if they’re unable to pay their debt, even if they’re sued, it can’t be garnished or taken from them.
An influential non-partisan group that lobbies on behalf of senior citizens is continuing to push Congress for a fourth stimulus payment to benefit senior citizens. … The first payment of $1,200 was sent in March 2020 followed by $600 checks in December 2020. In March 2021, payments of up to $1,400 were approved.