Struggling borrowers know the small, faint hope that is debt relief via grant. Unfortunately, the desperate temptation to believe that there are grants available to pay off personal loans is what drives criminals to take advantage of those most in need help. Learning what a grant is meant to accomplish, taking steps to protect yourself and enrolling in a credit counseling program are your surest steps to legitimate debt relief.
The Facts About Grants
Billions of dollars in grant funding is provided every year by federal, state and local governments, as well as private individuals and corporations. However, the purpose of a grant is to not provide debt payoff assistance to individuals; rather, they're used to support legislation, or to improve the common good. Your personal debt relief is not considered the "common good."
It is true that grants don't have to be repaid. However, they are earmarked for specific purposes; for example, if you're conducting research on sustainable farming practices, you may be eligible for a grant. Competition is stiff, and applications are long.
Avoiding the Scam
Use common sense. No one will call or mail you with the news that you've won a grant. Also, don't pay for grant assistance; it's easily located on the Web. Keep your private bank and credit card information to yourself -- never give anyone your Social Security number -- real grant applications don't need this information. Remember that scam artists put the "artist" in the scam; websites, telephone personnel and even telephone numbers may look and sound official.
Debt Payoff Alternatives
Don't despair; there are legitimate debt relief options to consider. Try doing it yourself using the "snowball" or "avalanche" technique; the "avalanche" saves the most money. Concentrate every extra dollar on one bill, while paying minimum payments on the rest; the avalanche pays the highest-interest loan first, while the snowball pays the lowest balance. When the first bill is paid, apply the payment to the next.
Also consider taking advantage of one of the many top-rated credit counseling agencies. The National Foundation for Credit Counseling is the oldest. It has a sound reputation and offers a free consultation and inexpensive rates for debt management plan enrollment. You may also consider settlement or bankruptcy options; however, be advised that these choices may damage your credit further.
Monitoring Your Credit Report
If it's too late and you've already supplied personal data to a grant assistance company, order your credit reports immediately at AnnualCreditReport.com; you are entitled to one free report from each bureau per year. Read it carefully and dispute unauthorized activity, noting that you suspect you're an identity theft victim. File a complaint with the Federal Trade Commission and your state attorney general. You may also wish to contact the Better Business Bureau. You may not get a refund, but you can prevent further damage to your credit's reputation.
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