Get-Out-of-Debt Government Grants

You've heard it before: If it sounds too good to be true, then it probably is.



That truism has no better use than when applied to the false reports of government grants awarded for the purpose of paying down debt. Simply put, they do not exist. There are legitimate government grants available for those who apply, but there is never a fee, and they will not come to you.

Government Grant Resources

The only legitimate resources for government grants are federal and state governments themselves. Consumers may view available grants without registering by going to grants.gov, which has a list of the grants in addition to each grant's requirements. Grants are available for a variety of purposes, but as of March 2011, neither the federal government nor any state government offers grants for the purpose of eliminating debt. If you wish to investigate your state's grant resources, check with the state's website.

There is never a fee to apply for a government grant or to obtain the money once a determination has been made to award the grant. Applications are available online and may be tracked there, as well.

Scam Artists

Do not pay a fee or give personal information to anyone claiming to be able to secure a government grant for you. The Better Business Bureau provides a wealth of complaint information from consumers who have been scammed by these con artists.

Sham operations often have professional-sounding telephone personnel and websites that support the appearance of legitimacy. Businesses like the "Grant Resource Center" and "Grant University" have ratings of "F"---the lowest rating possible---from the Better Business Bureau.

The worst type of government grant scam artists not only collect a fee but also ask for your personal information, such as your Social Security number. They then proceed to steal your money and identity, all while damaging your credit.

Real government grant applications do not ask for your Social Security number.

Options

If you are in debt and don't know where to turn, your first call should be to the National Foundation for Credit Counseling. This nonprofit organization is the nation's longest running consumer agency entirely devoted to consumer financial education. Its counselors, who must complete a rigorous certification process in debt and budget management, provide free consultations and safe advice. They may even be able to put you on a debt management plan designed to help you become debt-free.

The NFCC also provides housing counseling for the purpose of foreclosure prevention as well as pre-purchase advice. The website offers a variety of calculators and other resources.

Risks

So-called government grant agencies pose a threat not only to your wallet but also to your identity and credit rating.

If you discover a legitimate grant for which you're eligible, apply risk-free with no fee online at grants.gov. Grants are often available for small businesses, women, and other minorities. Do your research on that website first. Otherwise, prepare to be scammed.

Should you decide to speak with the NFCC, know that participation in a debt management program may negatively affect your credit score in the short term. However, it is a legal nonprofit with an excellent reputation, and you will not have to worry about the organization's legitimacy.