National Debt Relief Stimulus Plan

The Obama government after the approval of the US congress has allocated 787 billion dollars in government spending. This spending in the form of tax credits, grants, contracts and loans is widely seen as the national debt relief stimulus plan. The government plans to spend the sum of 787 billion dollars over a period of ten years to stabilize the ailing economy. A major chunk of the funds are allocated to be spent in the first three years. Tax benefits to organizations are aimed at saving them from bankruptcy and in the process helping the general population retain jobs.

Over 200 billion dollars worth of government contracts in infrastructure have been put up for bid to create new jobs and help consumer spending. Under this stimulus package the government is also offering over 250 billion dollars in tax benefits. The tax credit program introduced by the administration will also enable the citizens to take home more money to pay off their debts and increase spending.

The economic recession prompted the Obama government to device a stimulus package that will cushion the economic spiral. After the Obama government proposed the stimulus plan, the US congress signed the American Recovery and Reinvestment Act of 2009 (ARRA). The administration also realized that due to the economic downturn some credit card companies were being ambiguous in their transactions. This was leading to the rising number of people with credit card debt. Realizing the need for greater transparency the US congress passed the Credit Card Accountability Responsibility and Disclosure Act of 2009. This act popularly came to be known as the Credit Card Reform Act of 2009. These two acts together were widely regarded as the national debt relief initiative undertaken by the Obama government.

American Recovery and Reinvestment Act of 2009 (ARRA)
Many tax credits promised under the ARRA would help people save money to pay off their debts. For example, people who purchased a car in the year 2009 can deduct local and state sales tax they paid along with any fees they paid in states with no sales tax. The tax deduction is limited to a purchase of up to USD 49,500.

The ARRA known as the Obama debt relief act also made changes in the federal income tax withholding tables, allowing individuals to take home more salary. The work pay tax credit is up to USD 4,000 for individuals and USD 8,000 for married couples. Work pay tax credit will also benefit self-employed individuals although it is not applicable for retirees unless they have earned income.

The credit card act is widely come to be known as the national debt relief program because it has put curbs on the interest rates charged by credit card companies. It also mandates card companies to notify its customers 45 days in advance about any changes in the interest rates.

The card companies will also have to mail the credit statements to the customers 21 days prior to the payment due date. Earlier it was 14 days before the due date but has been increased now, as part of the Obama debt relief initiative. The government has also made it mandatory for the card companies to have their contracts online for government scrutiny. The credit card reform act also stipulates the font size used in credit card contracts.

Government Grants for Individuals
There has been much hype about free government money for individuals to pay off debt, this just isn't true. The government does not pay off individual debt and there is no stimulus plan for settlement of credit card debts. The government however does give individual grants to assist people with continuing education, home improvements and health care.

There are several government grants like the Pell grant, SMART grant, etc. which give scholarships to deserving students from low income families. The Housing and Urban Development (HUD) department also gives home improvement grants to low income families, for removing health hazards from their homes and to improve living conditions.

The government funding set aside by the US government to fuel the economy is popularly known as the national debt relief stimulus plan. The government reasoning behind the stimulus package is to increase consumer spending and cushion the economy by injecting government money in the markets.