Government Grants for Credit Card Debt

Many Americans find themselves under a mountain of increasing credit card debt. Looking for relief from the financial burden, consumers have turned to debt-relief companies and even the federal government.

Misconceptions

There is no shortage of websites that claim individuals can apply for a federal grant to relieve them of their credit card debt by going to Grants.gov. On the front page of this website is the statement: “Grants.gov does not provide personal financial assistance.”

Credit Counselors

As reported by ABC’s Mellody Hobson, credit counselors such as the National Foundation for Credit Counseling do receive government grants in part to fund their services.

Caution

Advertisements abound for companies claiming to eliminate credit card debt with federal money. According to Hobson, many people are unaware that some credit counseling companies’ activities can actually harm a person’s credit score.

Applying

Each credit counseling service has its own set of applications and information that must be filled out in order to apply for a grant. Make sure you know up front what is required from each agency before choosing one.

Full Disclosure

In order to fully help with the application process, credit counseling agencies will need to know your whole financial situation. It is important that you choose a company you feel comfortable disclosing the information to.

References

• ABC News: Mellody Hobson: Credit Card Woes
• Grants: Homepage