Debt Relief Grants – In the recent time, most American citizens are living with the burden of debt on their shoulder. Unfortunately, in line with the recent financial crisis in the states, prices for necessities go up and debts, in most of the case, become accumulated uncontrollably until it’s impossible to pay for most citizens. When you reach such condition you can only expect the government aid such as debt relief government grants to bail you out from such situation, like they bailed out the big corporations through the financial crisis.
Words and information spread all over the internet about the debt relief grants from the government. However is it any true on that? Does the government really grant debt relief freely for its citizens like that? Here we will provide you the truth about debt relief grants from the government and detailed information on how to ease yourselves through the debt debacle. Sit tight.
Debt Relief Grants from the Government
Firstly about the reality of government’s debt relief grant we are very sorry to inform you that it’s just a fairytale with no real validity at all. The government does not offer any debt relief grant for free so if you find any websites offering information about “free debt relief” it probably contains misleading information with the purpose to get money from the sites’ visitors.
While the debt relief grants from the government are unlikely to exist there are still ways to ease you through the debt debacle such as:
- Credit consultation service to assist families in debt
- Medical debt government assistance
- Tax rebate checks
- Debt consolidation
Debt Consolidation
Now we will discuss in details on how to get debt consolidation, for this process all you are going to need are your debt statement, lender contact information, and debt counseling agency contact information. Here are the detailed steps:
- List all of your debt to find out how much you actually owe.
- Look for advice from a reputable debt counseling agency. You can get help dealing with your debt with no fees for initial consultation and very low fees for later consultations. By visiting debt counseling agency you can ease your debt by negotiating payments and interest rate, waiving over-the-limit fees and stop collection calls.
- Provide your debt counselor with your financial information to enable them helping on your debt such as balance owed, interest rates, creditor names and minimum payments as well as your complete expense and income information.
- Participate in a debt management plan or commonly called as DMP. This program will help you deal with the debt full payment by reducing the payment burden significantly. This program only requires you to pay small fees and will help you through all the payment process. However, if you think that you can’t afford to participate in the DMP program you can turn to the last resort solution such as debt settlement and Bankruptcy protections. These options are not grants for debt relief and will damage your credit severely but it can be recovered with some extra effort.
Debt Relief Grants in US for Low Income
Federal, state, and also local governments provide many programs to support low-income families to learn how to manage their money. Debt is a big burden that low-income people cannot seem to lose. Everywhere you go, you will feel uncomfortable because the debt is still there.
The worst scenario, when pounds of debt keep increasing, becoming a serious threat for your financial health that needs professional diagnosis. Once the diagnosis is created, the remedy will come in various forms, such as grants, educational resources, and even debt relief programs.
Having debt can be challenging for many people, but this is a difficult thing to solve for low-income families. People in low-income families worry daily about how they will pay the bills, how to pa groceries per week, or other financial matter.
Who is Low Income Families?
If you are one of the millions of Americans fighting to get ahead, then you may feel just like the “low income” families. This term is very important when it goes to debt relief grants from the federal government.
The programs have formula to define “who is low-income families?”. The federal government set the difference between Low-income families and poverty-level households.
Poverty-level households or federal poverty guidelines use minimum income for a family need for clothing, shelter, transportation, food, and other things. Meanwhile, a low-income household is a taxable income.
Back in 2022, a low-income person in a household would earn $20,385. Alaska and Hawaii have different, higher, guideline since those areas have higher cost of living.
The U.S. Department of Health and Human Services, known as HHS, defines the poverty guidelines annually, using the income and the size of the household itself. For example, in Columbia, 1 person is poverty guideline ($13,590) and low-income guideline ($20,385).
So, if your credit card debt is your real pain, then you will not find any available government debt relief grants. But, there are some programs provided by the Federal government in the form of financial help through these long-time programs:
- Supplemental Nutrition Assistance Program – SNAP
- Temporary Assistance for Needy Families – TANF
- Medicaid
- Children’s Health Insurance Program – CHIP
Besides, there are more financial help for low-income people, such as HHS and U.S. Department of Housing and Urban Development (HUD). Or, you can contact health and human services department in your states.
FAQ
Here are some frequently asked questions related to debt relief grants:
Does the US Government offer a debt relief program?
No, there is no program for credit card debt relief, debt settlement, and relief programs from the government.
How to get free money from the US Government?
The US Government does not provide “free money” for personal needs. Federal grants are available for states and some eligible organizations. But, it is possible to get a federal loan to support your small business, education, and others. You can visit USA.gov’s official website to get more help with utilities, health care, and food.
Is debt relief worth it?
Debt relief is worth considering if you struggle to manage your debt payments. Debt relief is worth it you have more debt than you can afford to pay back in a reasonable time period.
How to get out of debt if you are broke?
1. Stop applying for a new debt, 2. Determine the total of your debt, 3. Create a budget, 4. Pay off the smallest debts, 5. Start working for the larger debts, 6. Find more ways to earn more money, 7. Increase your credit scores.
For Muslim, please avoid interest rate/riba!
References:
- Images: retroradio.hu, finanse.egospodarka.pl
- National Foundation for Credit Counseling: Credit Counseling – https://www.nfcc.org/our-services/credit-debt-counseling/#a
- Green Path: Credit Counseling – http://www.greenpath.com/
- (https://www.incharge.org/debt-relief/debt-relief-low-income-americans/)
