Government Debt Relief Grants: Fact or Fiction?

Many individuals facing large credit card debt and possible bankruptcy receive mailing and watch commercials regarding government debt relief grants. There has been some outreach by the government including stimulus checks. However, for those who need additional assistance with their high credit card debt and failing mortgages, does government debt relief grant money really exist?

Credit Card Debt Relief

There are some mailings people receive that state they are the government debt relief grants, and the return address literally comes from an address down the street from the White House. Similarly there are commercials that show the President speaking that appear to be help coming from the government. The problem is, these types of debt relief grants are scams. They are not actually a grant, rather they are simply false advertising. These groups focus on those who may already be searching for options as they are drowning in credit card debt. They reel people in with false hopes and then instead of offering a grant, they offer to assist people while charging large amounts of money for doing it. They will extend debt for a longer amount of time, which costs the individual more money in interest fees.

There are some debt settlement options which are not actually a scam. They do charge fees, however, they are upfront about pricing and the program. There are no debt relief grants, government funded or otherwise, which aid in credit card debt.

Government Debt Assistance

There are some government run programs that aid low income families with mortgage or rent payments, and other necessities such as food, but these companies do not run ads and are not supplying money for credit cards.

Similarly, due to the state of the economy there are other government run programs which offer assistance with mortgages. There are strict qualifications and again, this is not for credit card debt relief. This loan program is FHASecure. It is for those who are at risk of foreclosure and offers assistance refinancing subprime mortgages.

There is also federal student loan consolidation. It only applies to federal student loans, no private student loans. Again, this is consolidation, it is not a grant. It simply allows a former student to consolidate loans to a lower interest rate and only one monthly payment. There are certain time restrictions that apply as well, but most former students with multiple federal loans will qualify.

Legal Help

If you have been scammed by a company claiming to have debt relief grants or if you simply need assistance with debt settlement, it is important to contact a qualified attorney. An attorney will be able to assist and obtain the best possible outcome.