The federal government explicitly states on its grants website that it does not help delinquent borrowers with credit card debt. However, if you need help with your mortgage or a small business, you may be in luck. And if it's credit card help you need, a nonprofit is standing by.
Government Grants: Scam or Not?
The federal government does indeed provide billions of dollars in grants funding, if you're a researcher and have a clear, written plan as to how you're going to use the money. Credit card repayment is not on the available grants list.
Many people pay money every day to seemingly legitimate "grant assistance" organizations. However, the information these people pay for is free and readily available. The organizations may also be criminal; these companies often exist solely for the purpose of stealing personal information, such as Social Security numbers, credit card numbers, and bank account numbers.
Biggest Risk: Identity Theft
If you suspect that you've been victimized by a grants assistance company, it's not too late to take action. Order your credit report immediately, and review it for suspicious activity. Notify the credit bureaus, Equifax, Experian, and TransUnion, that you've been the victim of identity theft. Report the company to your state attorney general's office and the Better Business Bureau. You may not be able to get a refund on the company's grant search fee, but you may be able to prevent further damage to your credit.
Real government grants never charge a fee for applying. They won't ask you to supply personal information, either. Always apply for a grant directly through a government agency.
Refinance and Modification Opportunities
The government provides mortgage assistance through the Making Home Affordable program. Developed as a result of the housing market crash that began rippling through the country in 2007, qualified homeowners may earn an interest rate reduction, principal reduction, or both.
To qualify, you must have a conforming (non-jumbo) loan, but you don't have to be delinquent. Streamline refinances, where your interest rate is simply lowered with less-stringent paperwork requirements, must be Federal Housing Administration-backed. Modifications don't have to be FHA-backed, but the lender must be participating in the Making Home Affordable program (most do). Apply through your lender.
Business Loans
The federal government also sponsors microloans and small-business loans to help you get up and running, or to bring your business to the next level. Remember that these are loans -- not grants -- and must be repaid. You must also be able to document that the loan is for a business purpose. Don't apply through the federal government, but through a participating bank. As of May 2011, microloans are available up to $35,000; after that, you'll need a small-business loan (these loans max out at $2 million).
Credit Counseling
The nation's oldest nonprofit credit counseling agency is the National Foundation for Credit Counseling. If you're in trouble on your unsecured debts -- like credit cards -- the foundation can help. If you're eligible, you can enroll in a debt management plan that can save you money and aggravation, along with your credit rating. Fees are minimal, and you will fully repay your debts within five years.
0 comments:
Post a Comment