Grants for Credit Card Bills

Governments, individuals and corporations provide billions of dollars in grants funding for a variety of purposes every year. Earning a grant award is difficult, and competition is stiff. It's easy to understand why a delinquent borrower would be tempted to apply for a grant to repay his debts; however, despite ads to the contrary, there are no grant awards available to assist them.

Types of Grants

Grants are used to improve the lives of many. The government awards grants to support legislation. Private foundations and corporations award grants to advance research or development of a project. Sometimes they're used to provide operational support. The debt problems of individuals are not a cause for concern among these organizations; curing cancer? Yes. Your American Express bill? No. As borrowers become more desperate, the desire to believe that a magic grant for debt relief exists can override usually sound judgment. Unfortunately, sham companies take advantage of these borrowers every day.

Don't Be a Victim

Follow common sense. A legitimate grant-awarding organization will never call you out of the blue to announce that you've won a grant. If you're searching for grant opportunities, never give out your Social Security number, your credit card number or your bank account number; real grant applications never ask for these. Identity thieves often masquerade as a "grant assistance" company but use the private information you've provided to not only charge a fee for its "services" but also to set up new credit accounts in your name -- and never pay the bills.

Debt Repayment Options

Although debt repayment grants don't exist, there are options if you're struggling -- especially if you're having trouble with unsecured loans, like credit cards. Debt management plans exist to help borrowers get their finances under control. You'll pay your bills in full and on friendlier terms. It's not a loan or a grant, but it is helpful, and these plans have assisted millions of Americans for decades.

You can also try the "avalanche" or "snowball" repayment method; both instruct you to pay the most you can toward one debt. The "avalanche" is the cheapest way out of debt and pays the highest-interest loan first (the "snowball" pays the smallest first). Unlike debt management plans, these methods can be used with secured-asset loans, too. Use an online calculator to see how quickly you can be debt-free.

Legitimate Government Assistance

There is plenty of help for homeowners and small-business owners, however. They're not grants, but they are as close to a grant as the average applicant can get. The Making Home Affordable program can refinance or modify your loan if you're in trouble, although you don't have to be delinquent to get help. You may not even need an appraisal, and your credit won't be affected, provided you're not late on your payments. Small-business owners have a variety of loan options available to them -- loans, not "free money" grants -- from $1,000 up to $2 million.

Both programs require documentation and persistence, and although they're not grants, they are legitimate government assistance.