If you are having a low-income level, often you have to face the shortage of funds and have to remain deep in debt, preventing you from enjoying minimum standards of living. In addition, affording everyday expenses seems to be too overwhelming when the credit collectors keep on calling asking for the payments. It is understandable that it is not easy to get out of credit card debt on your own and you need assistance. Owing to this, government grants for debt relief exist.
What are Federal grants for credit card debt
In order to offer financial assistance, US government offers government grants for credit card debt relief. This helps in pulling out all those families facing an economic crisis and assists them in paying off their debt and overdue bills. The key advantage of Federal grants is that you don’t need to pay the money back.
Key reasons behind offering these grants are –
- To help you maintain your credit ratings and reputation.
- To stop you from drowning further deep in debt by taking fresh loans to pay off your previous loans.
Who is eligible for the grants
Finding out whether you are eligible for the federal grants has great significance before you actually think of applying. In the event where you don’t fulfill the eligibility, you would waste your money and time completing the long application process when you cannot actually have the grant. The first step towards deciding the eligibility is to be familiar with the organization you are representing (or whether you have plans to apply individually). If you already know whether you will be applying on behalf of your organization or individually, then you are all set to check your eligibility.
Following are the different types of organizations and the individuals eligible for applying for the grants –
Education Organizations –
- Public and state controlled institutions of higher education
- Private institutions of higher education
- Independent school districts
For-Profit Organizations –
- Organizations other than small businesses
Government Organizations –
- Native American tribal governments (federally recognized)
- City or township governments
- Special district governments
- County governments
- Native American tribal governments (other than federally recognized)
- State governments
Public Housing Organizations –
- Indian housing authorities
- Public housing authorities
One of the basic eligibility is that you need to an American citizen. You can also submit an application for having the grant opportunity on your own. If you are registering yourself individually, then you will only be allowed to apply for the grant opportunities that are meant for the individuals.
What are the types of government grants for credit card debt relief
Some of the common Federal grants for debt relief are as follows –
Mortgage Help and Tax Rebates
If you are undergoing the problem of debt, having a shelter for your family members with minimum income levels or paying monthly rents, mortgages, or loans can be a herculean task. Often it has been seen that debt or not having enough money can lead to evictions. In order to offer financial assistance for paying the rental bills and debts, federal debt relief grants are provided by the following departments –
- Public Housing programs
- Nonprofit associations such as – Salvation Army, Habitat for Humanity, American Red Cross, Mercy Housing, Catholic Charities, and Fannie Mae.
Free Grants to Pay Off Utility and Energy Bills –
If you are going through a financial crunch, paying off energy and utility bills can be a tough ask. You will have to spend your savings on paying utility bills that won’t help you with your debts and it can upset continued services as well. Government grants for debt relief will be provided to you if you are not having sufficient funds. The grant programs you should look for are –
- Home Energy Assistance Program (HEAP)
- LIHEAP Crisis Program
- The Weatherization Assistance Program
- Low Income Home Energy Assistance Program (LIHEAP) Grant
Free Medical Bills Money Grants –
Without a doubt, medical needs are important for everybody but the expenses can be hardly met if you are having low-income or insufficient funds. It can be intimidating to pay off the hospital bills which usually include – medicine bills and lab test bills if you are having insufficient funds. These government debt relief grants are distributed in such a manner that it helps the families, with low-income, to pay off their debts and medical expenses as well.
Federal medical grants are as follows –
- Children’s Health Insurance Program (CHIP)
- Medicaid and Medicare
- Healthy Families Program
- Federal Government Health Resources and Services Administration (HRSA)
- Pregnant Women Support Act
- United States Department of Health and Human Services (HHS)
Debt Relief Grants For Daily Expenses –
There is a long list of daily needs such as – internet bills, groceries, cable bills, home repair work, telephone bills, transport, gas and fuel, water bills, transportation, and healthy food. The expenses are all time high and it consumes a major part of the income leading a shortage of funds and debts. Following are the debt relief grant programs that help you to meet your everyday needs –
- Life-line, link-up for telephone bills
- Free Gas USA Inc for gas bills
- TANF funds for other expenses
- U.S and State Department of Transportation
What are the benefits of Government Grants for debt relief
Here we will be discussing Federal grants for debt relief. Going through these benefits, you will realize how easy it is to get rid of the credit card debt with the help from the government.
It is different from the usual loans you take from your bank or some financial institution. You don’t have to repay the amount given to you, in case you do not believe your eyes, you have read that right. Undoubtedly, grants are a great source of finance.
Convenience for applying for multiple grants
Most of the people are unaware of this fact. Yes, you can apply for multiple grants simultaneously while other applications are in the process of approval. This will certainly help you in improving your odds of being granted and the best part is that you may be granted with one or more grants in order to make yourself debt-free.
You don’t need to be worried about all your income getting taxed and government grants are one of them. You will receive the gross amount of money and you can use all of them to get yourself out of debt.
Availability of Debt Relief Grants
Most of the people are unaware of the fact that the government is offering money to get the people out of debt. People are having a negative image in their minds about the government and they don’t think that the government can be helpful at all. But, they don’t understand that the government will take all the important steps to have a stable economy.
No Credit Check
You might be going through a cash crunch, you are too lazy to get yourself a credit report, or you may be bankrupt. All these will not matter as for a government grant, there is no credit check required.