Government Programs for Credit Card Debt

Although numerous advertisements can be found indicating that there are federal funds available for assisting people who have credit card debt, the fact is that there are no such programs. Even though some of the companies which claim to be able to assist the individual in relieving debt will use the word "federal" in their company name, they do not have any relation to the federal government, nor do they have funds available from the government.

Grants

Some companies will claim that there are government grants available to assist an individual in paying off credit card debt. There are no such grants available. However, in certain circumstances, government grants can be used to pay off an existing debt, providing that the debt falls within certain parameters. There will usually be an application process involved, but there will never be any fees associating with applying for a government grant. By doing a web search for "government grants," an individual can find the different websites dedicated to providing information on government grants. Many of the sites are part of the federal government, and can be identified with .gov in the web address.

Counseling

Credit counseling agencies are linked to various government sites, but there are no individual agencies endorsed by the federal government. In general, even if a government site leads to a credit counseling site, there is no implication that the government endorses that particular site. It is up to the individual to make a determination as to whether or not the site is reputable. If a site seems to be engaged in fraudulent activity, it should be reported to the Federal Trade Commission.

Loans

The federal government does provide individuals and organizations with low-interest loans. Application can be made for a small business loan, for example, and the money provided in the loan can, in certain circumstances, be used to pay off credit card debt. However, the loan must still be repaid to the government. The advantage to this is there is a much lower interest rate and there are no long-term penalties incurred.

State Agencies

While there might not be relief from the federal government, there may be funds available on a state level. Sites such as GovBenefits.gov and www.ftc.com can assist individuals on locating the appropriate state agencies. Doing a web search on "state agency credit funding" can also yield results.