Government Grant basics

A new and very interesting program for debt relief is a government grant.

You may have seen the television commercials, or heard the radio ads or seen various websites claiming that there are government grants for almost anything you need, even debt consolidation. Such a program could be a dream come true for debtors, but it's not as straightforward as it might sounds. Actually, it is quite misleading.

What are the grants they are talking about?

There are definitely government grant programs available, however many of these are for giving help to people who are starting a business, or helping new home buyers afford a home. No programs exist to specifically help debtors pay down their debts.

The only government grant which could be related to paying off personal debt would be a small business grant. It's true that a person could pay down their personal debt by borrowing money to start a small business then using their profit to pay off debts. Small business loans such as these however are rare, and are set aside to be awarded to only certain kinds of businesses that meet the government's criteria.

Are there other grant resources?

However, there are other sources of grants besides the government. There are corporations who give grant money to individuals. But as with government programs, these funds are only for individuals who meet certain qualifications, which qualifications will vary depending on the corporation's goals. Helping someone pay off their debt rarely furthers any large corporation's goals.

It is possible that a large corporation could earmark some grant money for helping individuals in need. Sometimes large companies will do charitable work to reach out to the community or for public relations. But don't expect this money to come. Plenty of reliable, tried and true ways to reduce debt exist.

Where can I find debt help?

However unlikely it is that someone will come along and pay off your debts for you, you can still find good help. You can try to negotiate with creditors and see if they will reduce your interest rates or minimum payments, if you agree not to take on additional debt. Many credit counseling agencies also exist to help your with debt repayment assistance.

Online you can find various free resources to help your regain control of your finances. Here you can find out how to put together a meaningful budget and also find extra money to use to pay your debt. While it's seemingly not as simple as getting a government grant, at least you can depend on it to get your debt back to a place you can manage. 

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