Can You Really Get Out Of Debt Using Government Grants? - By: KD Bickell

For some reason many people believe that the government will give you money - for free - to help you get out of debt. Unfortunately that is not true. The government has enough of its own debt to pay off. However, there may be other ways that the government can help you financially.

Other Grants

The federal government will not give you money just to help you pay off your debt. But you may qualify for a financial grant for other purposes. There are 26 different government agencies that award grants. Many of these are set up to make grants for community projects, such as in the arts or community development. Others offer research grants, for hospitals or doctors carrying out research into health and disease. However, some grants are available to individual consumers.

However you have to meet certain criteria to qualify for these grants. For example, there are disaster relief grants which help people who have lived through natural disasters such as hurricanes or fires. Other grants may be available for housing or for developing your small business if you have one. You can see the grants available at http://www.grants.gov.

Loans

There are also government loan programs. If you qualify, these loans help you get a much lower interest rate than you would pay with most credit cards or commercial loan companies. Again these are usually for specific purposes such as business, housing and education (student loans).

Some of the government loans are administered through banks. So if you are asking your bank about a loan, it is always worth enquiring whether they have any government loans that you might be entitled to. You can find information about these loans at http://www.govloans.gov

Debt Relief Agencies

There are many debt relief agencies that are not affiliated with any federal or state government offices, but have a creative name that makes you think they are part of a government agency. So do your homework before signing up with any debt relief agency - check with the BBB, ask lots of questions, and read all the terms and conditions before signing up for anything.

You can be fairly sure that if a website ends in .gov, it is a government website. If it ends in .com or anything else, it is probably not. If you are in doubt, check the terms of the website or ask them.

If an agency charges you a fee for finding you a grant it is a sign that you are probably just dealing with a commercial debt counselor or debt relief agency. They may very well be able to help you reduce your debts. But they won't give you any "free money".

And don't bother paying for any books or manuals that promise to help you find grants that sound too good to be true. Those are usually a waste of your money.

And beware of companies that advertise "government debt relief". They may help you deal with the government if you owe back taxes. And they may offer you advice on declaring bankruptcy. But for most people, you should avoid these companies entirely.

So if you were hoping that you could get free government grants to help you get out of debt, there are no miracles. Take this information as a learning experience. And start looking into the real debt relief programs that can help you pay off your credit card bills.

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