Are there government grants to pay off debt?

Asked by: Dena Schaden  |  Last update: May 8, 2025
Score: 4.7/5 (5 votes)

Keep in mind that the government doesn't offer grants to help Americans pay off consumer debt from things like credit cards. It does, however, offer financial support for Americans struggling with a range of tough financial situations.

Can you get a grant to pay off debt?

Unfortunately, there aren't grants for what you're looking for. In general, there aren't any grants for individual debt or even to start a business.

Is there really a debt relief program from the government?

When it comes to credit card debt relief, it's important to dispel a common misconception: There are no government-sponsored programs specifically designed to eliminate credit card debt. So, you should be wary of any offers claiming to represent such government initiatives, as they may be misleading or fraudulent.

Can the government pay off my debt?

While there are no government debt relief grants, there is free money to pay other bills, which should lead to paying off debt because it frees up funds. The biggest grant the government offers may be housing vouchers for those who qualify. The local housing authority pays the landlord directly.

What is the National Debt Relief Hardship Program?

National Debt Relief is a debt settlement company that works with borrowers who are significantly behind on payments. This company negotiates with major credit card issuers and banks to reduce most types of unsecured debt, including: Credit cards. Personal loans.

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Is there a free debt relief program?

Key Takeaways. There aren't any free government debt relief programs for credit card or personal loan debt other than bankruptcy. Many types of government debt relief exist in the form of grants and low-interest loans for specific purposes.

How do you qualify for national debt relief?

You will need to meet a few qualifications to work with National Debt Relief:
  • You must live in a state where services are offered (all states except Oregon, Vermont, and West Virginia).
  • You must have at least $7,500 in unsecured debt.
  • You must be behind on payments.

How to get free grant money?

The government does not offer "free money" for individuals. Federal grants are typically only for states and organizations. But you may be able to get a federal loan for education, a small business, and more. If you need help with food, health care, or utilities, visit USA.gov's benefits page.

Can I get my debt forgiven?

Filing for Chapter 7 bankruptcy may discharge most unsecured debts, including credit card balances, which can give you a fresh start. Chapter 13 bankruptcy, on the other hand, lets you create a payment plan to repay some of your debts over three to five years, after which any remaining eligible debt may be forgiven.

How can I get money if I'm struggling?

Facing financial hardship
  1. Food assistance. ...
  2. Unemployment benefits. ...
  3. Welfare benefits or Temporary Assistance for Needy Families (TANF) ...
  4. Emergency housing assistance. ...
  5. Rental assistance. ...
  6. Help with utility bills. ...
  7. Government home repair assistance programs.

Who can give me money right now?

There are several organisations that can support you if you are in need of emergency funding. These organisations can help you buy food or pay your bills.
  • Trust funds.
  • Credit unions.
  • Councils.
  • Energy providers.
  • The Government.
  • Charities.

How to ask for debt forgiveness?

The borrower can apply for debt forgiveness on compassionate grounds by writing about the financial difficulties and requesting the creditor to cancel the debt amount.

How to get a hardship grant?

The federal government doesn't give hardship grants to individuals. Instead, grants of this nature go to state and local governments, colleges and universities, law enforcement agencies, research labs, nonprofit organizations and businesses.

Is government debt relief real?

There isn't a government debt relief program that targets credit cards or personal loans directly. However, some government programs could help with other types of debt. For example, there are government programs that help with housing, utility bills, and medical care.

How to ask for grant money?

5 Steps on How to Ask for a Grant
  1. Find matching grant prospects. ...
  2. Visit the website of your targeted grantors from time to time. ...
  3. Call the person in charge to confirm your eligibility. ...
  4. Prepare a grant proposal or letter of intent. ...
  5. Follow the grantor's application process exactly.

What is the debt relief Act?

Updated September 5, 2019 — The Mortgage Forgiveness Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence.

Does the IRS have a debt forgiveness program?

The IRS has a limited window to collect unpaid taxes — which is generally 10 years from the date the tax debt was assessed. If the IRS cannot collect the full amount within this period, the remaining balance is forgiven. This is known as the "collection statute expiration date" (CSED).

Does debt forgiveness ruin your credit?

The short answer is yes, credit card debt forgiveness can negatively affect your credit score. However, the impact depends on various factors, including your current credit score and the specifics of your debt settlement agreement.

Does the US government give personal grants?

You may have heard of forms of government assistance like small business grants and subsidized healthcare. But did you know that the government offers personal grants for individuals, too? If you meet eligibility requirements and you need the money for one of a set of approved expenses, you could be in luck.

Who can help me with money urgently?

If you need to borrow money fast, you can apply to your local credit union to find out what sort of loans and interest rates are available. Our guide Borrowing from a credit union can help you find out how it works and how to find one.

How to get a hardship loan?

How to get a hardship loan
  1. Review your credit. Read your credit report to see what a lender will see when you apply. ...
  2. Calculate your monthly payment. ...
  3. Pre-qualify with multiple lenders. ...
  4. Prepare your documentation. ...
  5. Submit the application and get funded.

Is freedom debt relief legit?

Freedom Debt Relief is a legitimate debt settlement company founded in 2002. It's accredited by the Better Business Bureau (BBB) with an A+ rating and holds an accreditation from the American Association for Debt Resolution (AADR).

How to pay off $10,000 credit card debt?

Here are four of the fastest ways to pay off $10,000 in credit card debt:
  1. Take advantage of credit card debt forgiveness.
  2. Consider credit card debt consolidation.
  3. Use your home equity.
  4. Ask your lenders about financial hardship programs.

Has anyone been approved for debt relief?

Over the past four years, the Administration has approved nearly $180 billion in student debt relief for 4.9 million borrowers through various actions, taking historic steps to aid hardworking Americans across the country who have worked to repay their student loans but remained in debt.