Government Debt Relief grants to accelerate a minimalist lifestyle? Think again…


Can you get a US government debt relief grant to pay down your debts?

The short answer is “not on your life”, but there are possibly other Government Options available to you, depending on your specific situation.

There is a good number of mistaken information going around recently about government debt relief grants.  Many people believe that the government will pay  individuals to get out of debt.  Unfortunately, this is far from the truth. However, there may be different ways that the government will help you on a financial level.

Government Grants

The US government will NOT give you money simply because you are in debt, however it may be that you will qualify for a government grant for other purposes. This grant could definitely assist you financially.

You will find about 26 different government grant making agencies.  Several are established to make grants for community projects, for instance, within the arts or community development.  Other grant opportunities are government research grants,  mainly for hospitals or doctors carrying out research into health and disease.  However, some government grants are available to us as individuals.

One needs to be in a specific situation to qualify for these grants. For instance, there’s “disaster prevention and relief” which helps those who have lived through terrible disasters (hurricanes, fires, etc).  Other government grants may be readily available for housing or for starting or the development of a small business.  You can see these and all of the grants offered at grants.gov

Government Loans

There is also a government loans program.  While this will not get you out of debt,  should you qualify you could get great financing at a much better rate of interest than you would pay with most credit cards or commercial loan providers.  Again, these are usually for specific purposes such as business, housing and education (student loans).

Some of these government loans are administered through banks. So if you’re asking your bank about a loan, it is usually worth inquiring whether they have government loans that you may be entitled to. You can find information about these loans at govloans.gov

Debt Settlement Agencies

There are many debt settlement agencies that have nothing to do using the federal or state government, but may have a business name which makes you believe they are a government agency.  At least, this is what they want you to think.  Be cautious in working with any of these. A number of them are probably reputable agencies, but others might have the intent to deceive you.

Rest assured,  if a website leads to .gov, it is definitely a government website. If it ends in .com or other things, it is more than likely not affiliated with the government, but it is possible that it is.  If you’re in doubt, look into the the website or question them to find out any affiliation, if any.

If the agency tries to bill you or impose a fee for finding you a grant or assisting you get rid of debt, it’s definitely a sign that you’re dealing with a commercial debt counselor or debt relief agency.  They may be in a position to assist you in reducing your debts, however they will charge you something for their service.  You have to thoroughly evaluate and decide if what they are offering is going to make financial sense and help you overall.  For the most part, I would recommend staying completely away from these companies.

A safer bet going this route is to work with Consumer Credit Counseling Service at cccs.org.  Personally, I worked with Money Management International (moneymanagement.org), which is affiliated with CCCS.  They were a HUGE part with helping me get out of debt.  When I used their service, no fee was required on my end at all.  There was an optional $30 monthly donation for their service, but again was completely optional and not required whatsoever.

Sometimes a company may advertise that they have “government debt relief” available.  What they will usually offer you is suggestions about declaring bankruptcy.  This method might be regulated through the federal government but it is not a grant. For most of us there are possible ways of getting out of debt than bankruptcy.  Please stay away from bankruptcy as much as possible and look into all of the other options out there first.

Even if it may be bad news to hear, it is best to understand the truth about the the options that are offered to you so you know what you are getting yourself into.  The fact really comes down to is that the so called “government debt relief grants” do NOT exist.

For the Minimalist Lifestyle, remember – Less is Positively MORE!™

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