Obama's Debt Relief Program

US government has allocated 787 billion dollars to energize the economy and provide some relief to the population who are reeling under financial pressures. The 787 billion dollars are to be spent over a period of 10 years with the major chunk to be distributed within the first three years. An act, popularly known as Obama's debt relief program was passed by the Obama administration that promises to take measures which will help people pay off their debts.

Along with American Recovery and Reinvestment Act of 2009 (ARRA), the US Congress passed the Credit Card Accountability Responsibility and Disclosure Act of 2009. These acts will be playing a major role towards stabilizing the market and ensure that people do not fall into a debt trap. Under the ARRA the US government has allocated over 200 billion dollars in the form of grants, loans and contracts that will help job creation and help the economy to recover.

Out of the 787 billion dollars, 288 billion dollars have been promised as tax benefits for individuals and organizations. A large amount of this is going to be spent in the first three years with benefits extending to American families in the form of work pay tax credit and earned income tax credit. These tax credits will significantly increase the take home salary of many individuals and will indirectly help them pay off their debts.

This program also prompted home loan companies to halt foreclosure on many mortgage properties. The home buyers may be eligible for a credit of up to $8,000 dollars, this is a major shot in the arm for many home owners heading towards foreclosure.

US government also allocated 275 billion dollars in the form of grants, contracts and loans to help stabilize the economy. To help people earn more money by starting their own business the Obama debt relief stimulus package has set aside funds in the form of grants. A huge amount is also being given out as education grants to students who are looking to upgrade their skill sets. College grants for single moms and other marginalized groups will help the population get a better education.

A majority of the population is reeling under credit card debt and the Credit Card Accountability Responsibility and Disclosure Act 2009 or Credit Card Reform Act of 2009 aims at stopping the situation from escalating. The measures taken under this act have put a curb on some of the unfair tactics used by credit card companies. This act is also known as President Obama's credit card debt relief program.

Credit card companies have to give a 45 days notice to cardholders for any changes in the interest rates, and if the card holders so wish they can cancel the card after 3 billing cycles. Under the Obama credit relief act, card companies are also forbidden to change the terms of the contract indiscriminately.

The act also stipulates the size of the font that has to be used by credit card companies for the terms of the credit card. Creditors will also be required to give details about the minimum payment in the statements, details about time required to pay off debt have to be included as well.

All these measures taken to boost the spending power of the population and to safe guard the interests of the consumers are being hailed as Obama's debt relief program. The government has also increased it's spending for unemployment benefits and in the health care sector.