It is not a secret that a large section of the population in the country is living their life with the constant fear of their debts. Why do they take these debts? They take them to fulfill their basic needs, dreams, and desires. But what they forget is that as easy as it seems to take a loan, it is daunting to pay these debts. With a tight budget every month, there is a high probability that you would not be able to pay the debt, and it would keep piling up along with the chunky interest. Dealing with debt can be physically and mentally daunting, as once you fall prey of the debts, you will feel like you can never overcome the problem. But the good news is that the US government is coming up with debt relief programs which act as an excellent financial aid to the citizens who are drowning in debt. Read this article to know more about debts and debt relief programs. What kinds of debts do people take? Most people fall victims of debts because of taking the following loans: Car loans Education debt Credit card debts House loans What are the debt management options you can opt?

Debt consolidation is a process where a new loan is taken to repay numerous liabilities and consumer debts. It results in the generation of a large piece of debt, though the terms may be more favorable in nature. Such a loan is expected to carry a lower interest rate or a lower equated monthly installment or both may exist at the same time. Consumers use the procedure as a tool for preferred dealing with a student loan, a loan from credit cards or similar types of debt. Types of debt consolidation Basically, debt consolidation is of two types. The first type requires the debtor to apply for and receive the loan in order to replace all the previous debts and bills. In this case, the past creditors are paid and the debtors would owe a monthly payment for repayment of the new accredited balance with the consolidation company that has extended the new credit. The other type involves generating a debt management program. In this case, an account is created to chart all the debts accrued to current creditors. This helps the managing company pay all the debts and credit the sum repaid in the account of the enlisted debtor.