You see the infomercials on television promising billions in dollars in grants for people like you. Some of the commercials advertise grants for credit card relief. Is it true? Can you tap into some of the $500 billion the federal government provides in grants each year? The answer is yes, but getting a so-called credit card grant is a bit more complicated than just receiving a check.
Grants for Credit Card Relief
No federal, state, or local government agency offers actual grants for credit card relief. You can't apply for a $5,000 grant for a check to be mailed to Visa on your behalf. However, you can find "free money" from a variety of federal government sources that you can use to get rid of credit card debt. Smart consumers know to look carefully at every source of information and to use it to their advantage.
How? By making sure you're not leaving any money on the table. For instance, have you completed a free unclaimed money search? Have you looked for lost inheritance money?
What about searching for unclaimed money the government may owe you? Could you have lost savings bonds or be entitled to any of the following?
- Lost pensions for you or a parent?
- Unclaimed shares from a credit union?
- Money in an account with a bank that failed?
- HUD/FHA insurance refunds?
- Unclaimed tax refund?
Look carefully at whether the federal government owes you money, and if so, apply to receive it. Once you receive that money, don't spend it. Instead, use it to get out of debt. Don't ignore any avenue for credit card debt relief. The one piece of information you don't chase could have been the answer to getting rid of debt. You don't want any regrets.
Get Rid of Debt
Your credit card debt is probably not your only debt. Most people also carry debt from:
- Student loans
- Car loans
- Medical bills
- Utilities
Money you find to pay one of these debts can be freed up to pay other debts. So how do you get rid of debt using federal money?
Like searching for unclaimed money, search for federal government programs that provide financial assistance. For instance, if you qualify for a lower student loan payment based on the Income-Based Repayment plan from the federal government, use the freed-up money to pay down credit card debt.
If you earn 150 percent of the federal poverty line in annual income, your student loan payment is $0. Yes - $0! It's almost like getting a student loan discharge. Take the amount you used to pay for student loans and think of it as a grant for credit card relief.
Use the same system for other bills to get rid of debt. Do you qualify for food stamps or home heating assistance? What if you could receive $200 per month in food or fuel? Take that $200 and apply it to bills to get out of debt. Is it a credit card grant? Not quite. But it's good enough to get help for debt.
Credit Card Grants and Help for Debt
Finding grants for bills, especially credit card grants, is more about discovering any source of free money than it is about using that source to shuffle money and debt in a way that makes the most sense and gives you the most benefit. There is no grant for credit card debt, and any site that claims to have a secret method for finding one is trying to sell a product, not offer solid advice. Check with the Federal Trade Commission and Better Business Bureau before purchasing any guide to help with grants or credit counseling.
Help for debt comes from many sources. For instance, are you disabled? A veteran? A single mother? Apply for assistance programs that provide help for debt and daily life expenses, and then use the new cash and benefits to pay down credit card bills.
The people who are most successful when searching for grants for credit card debt are those who try every source for help. Research all federal, state, and local government aid. Keep an eye out for promotions, non-profit grant directories, and special programs designed to help you get out of debt. Sometimes help for debt comes from a piece of information you almost ignored, so don't make that mistake. Do the legwork and get as much debt relief as possible.
Resources:
"Government May Owe You Money," USA.gov, accessed February 17, 2011.
"Income Based Repayment," IBRinfo.org, accessed February 17, 2011.
"Low Income Home Energy Assistance Program," U.S. Department of Health and Human Services, accessed February 17, 2011.
"Supplemental Nutrition Assistance Program," USDA, accessed February 17, 2011.
Melanie Zoltan - Melanie Zoltan is a former college professor and administrator who has written for About.com, PCWorld, Brain Child, Thomson Gale, and ...
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