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Tuesday, September 08, 2009

Personal Grants To Pay Off Debt

Have you ever been watching the television when an ad comes on, promising that if you go to their website they can show you how to eliminate a good chunk of your personal debts through government grants to pay off debt that you never have to pay back?

How about seeing an advertising banner for something similar online?

Well just like most things that sound too good to be true, this one more or less is as well. While the claims they make are technically true, they are also can be very misleading. While you can apply for a government grant AND pay off your personal debt, no program exists for you to apply for a government grant TO pay off your personal debts. There is a difference between the two, and that difference is the one between a free ride and a lot of work.

What most of these websites and ads are referring to are the government grant programs for those looking to start their own businesses. The way these work is that they will give you a small amount of startup money for a business plan that seems like it would benefit your community (for example if you were to create a non-profit or a local produce market if there were no others in the area). If that business becomes successful, you can then use any profits you make off it to pay off your debts as you do not have to repay the government money.

This is probably a lot more work than those looking for a quick and easy way out of their debt might be hoping for, but if it appeals to you by all means give it a try. Those grants are there for people to apply for and must be given out, although these government grants are not government grants to pay off debt per se. When you apply for grants such as these, you can often find support information on the same website to help you create a business plan and get your startup up and running successfully. They would not be offering all this free money if they did not want to give people the best possible chance of success.

There are also some other kinds of grants available, although none of them are considered grants to pay off personal debt as the ads seem to promise. These options include grants for paying off hospital bills, tax debt, and programs designed to get people their uniforms for their jobs. Unfortunately, most of these grants are only available to those with severe economic hardships and often come with other strings attached like participation in a job program or proof of poor income.

Another option for free money is that sometimes the government or specific organizations will offer grant money to be used toward paying off education debt if you are studying a particular career path such as medicine or teaching.

The long and short of it is if you want free money from grants to pay off debt you had better be prepared to work for it and you have to really need it. It is suggested that you do not use false information when applying for a grant as the consequences could end up costing you much more than time and money.
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