It can happen to the best of us. We get in over our heads in debt because of lavish spending, or maybe we had unexpected medical bills and the out-of-pocket expenses were astronomical. Maybe our student loans got out of control. Maybe we've been out of work and have struggled to find a new job. Whatever the reason may be, it's easy to get into debt. But that doesn't mean it needs to be harder than necessary to get out of it.
If you're in debt and are in need of help, it is time to look into government debt relief grants and other assistance that can help you take control back over your financial situation. But understand that debt relief is not the same as a loan. Debt relief or forgiveness is when you are absolved of all or a portion of your debt due to some financial hardship. Grants, however, are not available to help you pay off your credit card debt. For credit card debt relief, you will need to pursue a debt relief and consolidation loan option, and a visit to this Credit Card Debt Relief website could be a good start.
Government assistance programs
For citizens with income below the national poverty level (2019, that's $25,750 for a family of four), they can qualify for one or more of the six government assistance programs available in the United States. Those programs are:
- Temporary Assistance for Needy Families – designed to assist families in gaining self-sufficiency; this program is more commonly to as welfare
- Medicaid – provides health coverage to low-income adults, children, pregnant women, people with disabilities, and elderly adults
- Supplemental Nutrition Assistance Programs – assists needy families with supplements to their food budget
- Supplemental Security Income – this is an income supplement program of cash for basic life needs such as food, clothing, and shelter, designed for elderly adults, the blind, disabled people, and those with little or no income
- Earned Income Tax Credit – this program reduces the amount of taxes owed for people with low to moderate income
- Housing Assistance – there are a variety of housing assistance programs available through HUD (Department of Housing and Urban Development); most programs are designed to provide a voucher to help pay for rent on single-family homes, apartments, and townhouses
If you are in need of government assistance, basic information is available to you on the usa.gov website. Another great website is benefits.gov, a free site that can help you to understand your eligibility for various programs. In most instances, to qualify for a welfare program, you will need to meet one or more of the following criteria:
- Unemployment
- Willingness to enter into an agreement that shows you are demonstrating behaviors towards gainful employment
- You have a dependent child or children living in the household
- You must be age 18 or older
- You need to be a permanent, legal resident of the state where you are applying
- You will need to share proof of your monetary resources
The application processes for federal government assistance programs often vary by state. A good first step is to schedule an appointment with your local or state Department of Health and Human Services office.
Don't fall for a debt relief grant scam
You may have seen commercials on television, or you have heard advertisements on the radio, talking about new debt relief programs and grants, but often times these words are misleading. Don't be fooled, while there are government debt related grants, they are far and few in between, and are usually offered under a different name. If you hear terms such as "instant debt relief – guaranteed" think twice. Educate yourself on the various debt relief scams that are explained on this Card Debt Guide website.
Regardless, the first step here is to determine your eligibility. To do this, understand which type of organization that you represent. Organizations can include government, education, public housing, non-profits, for-profits, small businesses, etc. Visit this page on the Grants.gov website to better understand grant eligibility.
Next research the various grants available to you within your particular organization. The USA.Gov and Grants.gov websites are great resources. Examples of the more typical forms of government debt help include financial counseling services, federal student loans and mortgages, laid-off worker assistance, etc.
Federal financial assistance is usually different than a true grant. Typically this type of assistance comes in the form of the government providing food discounts, surplus property, or money provided to private recipients but with involvement between both parties (i.e the private citizen and the government). A true grant is still money provided by the government to a private individual but with very few restrictions.
Be aware that the government will not reach out to you directly to offer a grant or other assistance. If someone contacts you and indicates that you are eligible or have been selected to receive some sort of financial grant, do not provide your personal information. Personal information includes your social security number, financial institution or banking account numbers, etc. Also, the government will not charge you a fee to apply for or to accept a grant. And no matter what, any type of financial assistance from the government will require you to go through an application process.
While many websites offering debt relief grants may sound convincing and official, don't fall for it. The best place to start is directly through the government websites listed previously. In fact, the Grants.gov site has created this webpage to provide you with information specific to grant fraud and scams.
In lieu of a debt relief grant, it is more like likely that you will be able to take advantage of a program that offers support in one of the following areas:
- Utility bills
- Child care
- Recovery of unclaimed funds
- Down payment assistance for a home
- Tax credits for health insurance
- College assistance
The Office of Community Services, a part of the U.S. Department of Health & Human Services has created this website which provides contacts by state that you can contact to better understand services available to you. Additionally, this site provides a list of contacts to help you understand support you can receive for child care. And the Healthcare.gov site provides guidance on how to qualify for a credit to assist with insurance premiums.
