How to Consolidate Debt with a Grant

In times of economic unrest, unemployment isn't the only thing likely to rise. With so many people losing their jobs and major source of income, debt is usually on the rise as well. The government can help give you the financial legs you need to stand on in the form of grants to consolidate your debt. If you are currently in a state of financial crisis, there could be money waiting for you that you never even knew about.

Instructions

1. Choose which debts you would like to consolidate. There are many grants available to cover the costs of student loans, medical bills, childcare expenses, utility bills, and home loans. If your debts are caused from average living expenses, you can consolidate those debts. However, it isn't likely that the government will pay off your maxed out department store credit card.

2. Consider whether you meet the grant requirements. You must be 18 years of age and in a financial crisis in which there is no other solution to pay off your debts. Simply being unable to make the payments on time is not sufficient. Your income must be lower than the amount you must pay each month to debt collectors. Search for grants and read the requirements of each on the government's grant website. See Resources for link.

3. Prepare a file with all of the necessary documentation. You will need to show proof of your financial situation. Compile check stubs to show your monthly income and documents to show all of your outstanding debts. Request a letter from your creditors explaining how you have defaulted on your loans.

4. Register as an individual on the government grant website. Provide a valid email address because all communications will be sent to that address. View the handbook provided on the website for a step-by-step guide on how to register. See Resources for link.

5. Search for debt consolidation grants by scouring the government grant website. Type in "debt consolidation grants" on a search engine.

6. Contact a debt consolidation professional if you are having difficulty. They will help you determine for what grants you are eligible.

Resources

• Grants.gov
• Individuals User Guide
• 5 Tips for Rebuilding Credit Score