As 2021 comes to a close, consumers across the country are likely looking forward to the promise of a better year in 2022. In particular, those who are dealing with consumer debt are likely hoping for a financial fresh start in the New Year. Fortunately, there are some promising signs that relief from consumer debt could be on the horizon.

In December 2020, the U.S. House of Representatives approved the CARES Act, which includes provisions for consumer debt relief. While details are still being worked out at the federal level, the proposed provisions could offer important relief to consumers who are struggling with debt.

For starters, the CARES Act proposed a moratorium on late fees and interest on various aspects of consumer debt. Currently, late fees and interest rates can add up quickly for those struggling with debt. This moratorium could help many consumers reduce their total debt balance and avoid some of the worst effects of debt.

In addition to the late fee and interest moratorium, there is also a proposed program that would offer consumers the option to restructure or renegotiate the terms of their debt. This could be very helpful for consumers, as it would allow them to reduce their monthly payments and potentially reduce the overall amount of their debt. Although this aspect of the CARES Act proposal has yet to be finalized, it could offer the opportunity needed to get debt under control.

Finally, the CARES Act includes provisions for student loan forgiveness, which would provide a major boost to consumers with student debt. In particular, the proposed provisions would offer further relief to borrowers who have already been struggling to keep up with their existing payments. No matter the type of consumer debt an individual is dealing with, a debt relief program focused on student debt could be a great help for many Americans.

Overall, 2022 could be a great year for consumer debt relief. While the details are still being worked out at the federal level, the proposed provisions of the CARES Act could offer a ray of much-needed hope for those struggling with debt. With a little luck, these proposed debt relief provisions could provide the fresh financial start many consumers in the New Year.