There is a lot of mistaken information going around these days about government debt relief grants. Some people believe that the government will pay to get individuals out of debt. Unfortunately, that is not true. However, there may be other ways that the government can help you financially.
Government Grants
The federal government will not give you money just because you are in debt — but you might qualify for a grant for other purposes. And that could help your general financial situation indirectly. So let’s take a look at the overall picture.
There are 26 different government grant making agencies. Many of them provide grants for:
- - the arts
- - for community projects or community development
- - research grants to hospitals or doctors
- - disaster prevention and disaster relief in emergency areas
Those are the most common. Private individuals might possibly receive grants for:
- - housing purposes, or
- - developing an existing small business
You can see all the grants available at http://www.grants.gov.
Government Loans
There is also a government loans program. While this will not get you out of debt, you might qualify for a loan at a much better rate of interest than you would pay with most credit cards or commercial loan companies. Again, these are usually for specific purposes such as:
- - business
- - housing, or
- - furthering your education (student loans)
Some of these government loans are simply administered through banks. So, if you are asking your bank about a loan, it is always worth asking whether they have any government loans that you might be qualified to receive. You can find information about these loans at http://www.govloans.gov.
Other Debt Relief Agencies
There are many debt relief agencies that have nothing to do with federal or state governments — but bear names that sound like official government agencies. Be cautious if you are dealing with any of these. Some of them are reputable agencies, but a great many of them strive to deceive the public.
You can be fairly sure that if a website ends in .gov, it is a genuine government website. If it ends in .com or anything else, it is probably not. When in doubt, you can always check the fine print on the website, or just ask them directly.
If an agency charges you a fee for finding you a grant or helping you get out of debt, that is a sign that you are probably just dealing with a commercial debt counselor or debt relief agency. They may be able to help you reduce your debts, but they will charge you for their time. You have to decide if this is likely to save you money overall. But people often find they are overcharged by commercial companies, and many receive very shoddy and ineffective service, as well.
Sometimes a company may advertise that they have ‘government debt relief’ available. Again, this is misleading. What they will usually offer you is advice on declaring bankruptcy. This process may be governed by federal laws, but it does not include a grant program, by any stretch of the imagination. And, for most people, there are much better ways of getting out of debt than bankruptcy.
Even if it comes as bad news, it is better to know the truth about the options that might truly be available to you. There is really no such thing as individual government debt relief grants, although it’s a nice pipedream.
Some good stuff here. I for one have over spent on Chirstmas presents this year far more so than I did last year and am starting to feel guilty about some of the gifts that I bought thinking that perhaps I should not have done. Oh well, I guess I will have to pick up the pieces after the holidays are over..
It’s very easy to overspend at Christmas, isn’t it? I’m glad that I’m getting a bit older now. Over the years, everyone in my family has mellowed and they are all very understanding when money is tight. That is such a nice change. Focusing less on gifts and more on family togetherness really brightens the holidays for me!
Thanks for commenting on my blog!
Nice post. Didn’t know that about federal grant.
I’m glad it was helpful. Thanks for checking in!
I’m glad to see that there is acceptance for them that are recipients, these people have a major role in the operations
Coming from an unbelieving poor family were we did not have very much, the only time my parents went into debt was to buy luxuaries that we really could have done without. I do not see renting as dead money as it is giving you somewhere to live. We are now debt free other than the love we owe others and of course the debt we owe Jesus Christ. Only the mercy of God has allowed us to do this.
After I lost my job I have been dealing with evil debt collectors. I almost fell for some of the debt consolidation and debt settlement scams, I came across http://howigotmyselfoutofdebt.org they dont sell anything. I learned alot how those companies operated and what I should do. Don’t fall into another trap.
Good article. People need to be careful about not getting scammed.