Is applying for a grant a plausible way to pay off debt?

Answer 1

A grant is made for a specific purpose. So, if it was made for debt relief (through some philanthropy) then yes. But typically debt relief is not a valid reason for grants. If that were to be so, those philanthropies would go out of business in a blink of an eye!

In most cases, if you took a grant and diverted the funds for debt relief it could be a chargeable offense.

Answer 2

If you have seen or considered one of those websites claiming to "do the work for you" or even mail you the money within days..please think again. They are a scam and a rip off. Unfortunately, last year I saw many people get ripped off by this. A few of which even went as far as sending the initial $300 something for the start up fee. In turn they were "supposed" to get thousands within days. Needless to say that didn't happen. I was shocked, as many of these people are much smarter than that. However, becaue the website had "government" in government grants wording plastered all over it they assumed it was legit. NO, not so much.
A grant in general is also not a particularly good way to go about paying off debt. IF in fact you know it is 100% legit and filed correctly I guess you can have at it. However, I've found that paying off debt in the past with my tax refunds was much more plausible. I would have x bills set aside..and begin calling. Saying I have this bill for $xx.xx, would you be willing to settle for less than that amount? Less than the original billed amount that is. Some have you make an offer..others give you a specific number. Either way its less than the original and still shows up as paid on your credit. I've knocked as little as $40-50 and as much as $500+ off of bills before. Its definately worth a try. All they can do is tell you no! When its tax refund time, etc and you have the money to pay them immediately..they are MUCH more willing to work with you. Or if you have the money available to pay period..money DOES talk! They just want their commission and you just want a paid debt. :)

Answer 3

It is extremely unlikely that anyone will give you a grant to pay off debt. Debt is never the actual problem. It is a symptom of spending more than you make. Without correcting that issue, paying of what you owe now, only delays your problem.

Answer 4

No. The government is NOT in the business of giving away free money for the sake of giving away money. There are no grants for paying bills, no grants for paying off credit cards, no grants for getting out of debt and no grants for simply fattening your wallet.

Grants are free, but it means OBLIGATION. You will be obligated to do as the grant sets out to do. Grants have objectives, and your purpose must fit the objective of the grant.

For one, you have to write the grant application and the grant application is not a simple document - you have to explain how your purpose for applying for the grant fits well with the objectives set out by the grant.

There is a stringent review process through a committee. You will compete with other applicants for the grant money, and this grant review committee will evaluate the merits of each proposal. Only those that they feel exemplifies the objective of the grant will be approved.

You can go to the Catalog of Federal Domestic Assistance (CFDA) http://www.cfda.gov and Grants.gov http://www.grants.gov - these are two sites created by the federal government to provide transparency and information on grants. Browse through the listings and see if you can find any grant that would support your purposes.

Even if you buy books on "how to get grants" or list that supposedly has information on grants -- all of them are mere rehash of what CFDA has, albeit packaged differently.

Note though that these grants generally support non-profit organizations, intermediary lending institutions, and state and local governments. Most of the federal grants are given to specific target groups with specific requirements (e.g. minority business owners involved in transportation related contracts emanating from DOT - Grant#20.905 Disadvantaged Business Enterprises Short Term Lending Program. Individuals especially for personal purposes are not eligible for federal grants.

Grants are also often given to non profit groups or organizations involved in training or other similar activities (grant 59.043 Women's Business Ownership Assistance that are given to those who will create women's business center that will train women entrepreneurs

Answer 5

Why would anyone give you a grant to pay off debt?

Everyone would apply for one if it worked.

Answer 6

No.