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Will The Government Really Help You Pay Off Your Debt?

Jul 19, 2008
There are many different ways for an individual to get out of serious debt. Options include using personal loans, home equity loans, high-limit, low- interest credit cards, and debt consolidation services. Taking advantage of government grants is another very interesting method with which debt can be diminished.

There are television commercials, radio ads, and websites that tell us that we can get government grants to pay for almost anything, including debt consolidation. This sounds like a debtor's dream come true, but it's not as simple as it sounds. In fact, it is downright misleading.

What kind of grants are they talking about?

Government grants are usually released to individuals who are trying to buy there first home or open a small business. There is not any grant program that was designed with intention to help people pay off the debt that they owe.

The only type of government grant that is remotely related to personal debt relief is the small business grant. One could conceivably start a small business using grant money, make a profit, and use that profit to pay off debts. These small business grants are few and far between, however, and are designated for use by specific types of business that meet the government's needs.

What about other grant sources?

The government is not the only source of grants. Many corporations also give away grant money to individuals. But this money is earmarked for those who meet specific qualifications as well, and these qualifications depend on the company's needs. Paying off someone's debt rarely does anything to meet a large corporation's needs.

That said, it is conceivable that a corporation might give away grant money to help those in need. Large companies sometimes do charitable things to give back to the community or improve their images. But it's not something we should count on. There are much more reliable ways to get rid of debt.

Where Can You Find Help for Debt?

While it's unlikely that you will be able to get someone else to pay your debt for you, there is help available. You may be able to negotiate with your creditors to have interest rates and minimum payments lowered, on the condition that you can't take on any new debt with them. There are also credit counseling agencies that may be of assistance.

There are also some free resources online that can help you take control of your finances. You can learn how to make a workable budget and put extra money toward your debt payments. It may not be as easy as getting money from the government, but you can often get your debt under control on your own.
About the Author
Are you struggling to pay off credit cards every month? Learn how you can get your debt under control faster and save money at the same time at the Debtopedia website. Visit http://www.debtopedia.com for more helpful information.
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