Posted on June 18, 2009 at 10:55 pm hello is it wise to apply for a government grant to pay off my credit card  debts? they total about $15000 now. i heard about this thru a friend, he says it can be done, i'm just not sure if it's entirely possible. thanks and have a good one

Posted on June 18, 2009 at 11:36 pm Is that a good idea??? I mean getting a debt to pay off another debt? That's crazy. What if you default on that second loan? Wouldn't that put you in lot worse shape than before??I'm skeptical about the whole thing if you ask me!

Posted on June 19, 2009 at 12:56 am There is actually no government grant  specifically aimed towards unsecured debts--if you happened to go to a government office requesting for a grant of this kind, they'll most likely deny your request.

Posted on June 19, 2009 at 1:57 am Right, there are no such government grants or "free money" that are specifically geared towards credit card debts. However there are other means of acquiring resources for other types of debts. For example, if you are behind on hospital bills, you can approach your hospital's Patient Advocate and they can help you find ways on how to get the bill taken care of. If you or your family qualifies for "low-income" status, you may be eligible for state assistance, or for an offer that offers a sliding fee scale.Some people claim that getting a grant is much easier than applying for a consolidation loan, but then again that's because the latter requires some sort of collateral for securing the loan itself. Besides, the person looking at your application will definitely have to gauge whether or not you do have the resources and capacity to pay off your debts.

Posted on June 19, 2009 at 2:55 am Phillip, you have a good point there. Personally, paying off a debt with another debt is not really a good idea. If you get an unsecured loan to pay off your credit card debts for example, the interest rate would be really high; it would also be quite the daunting task to apply for new credit, considering that one is already in bad financial shape. Also, steer clear of claims of government grants that do not require repayment. These are very likely to be scams. Do your research carefully and exercise proper caution in handling these things.

Posted on June 19, 2009 at 4:42 am oh ok. so what alternatives should you suggest i take?

Posted on June 19, 2009 at 4:45 am Whatever you do, don't file for bankruptcy!!!! I did once and my credit score hit an all-time low because of that stupid decision.......... and i am still struggling to bring my credit back up. It was the first thing I did when i was in a bind. i should have done something else and i'm really regretting it now

Posted on June 19, 2009 at 5:15 am You can try borrowing against your 401(k) if you have one. It's much more advisable than if you take the money out. I say that because if you can pay back what you've borrowed within the next 60 days, you won't be charged any withdrawal penalties; on the other hand if you aren't able to pay back what you owe from the 401(k), you will be charged with a 10% early withdrawal penalty.

Posted on June 30, 2009 at 12:15 am You still have a number of debt consolidation options aside from a government grant, Anger Manager. For one you can try debt settlement--a certain portion of your debt will be waived by your creditor, and you'll be given 12-36 months in order to have that amount paid off. It's a good help especially if your debt amount is steep.

Posted on June 30, 2009 at 2:08 am how much of my debt will be waived? and how much should i pay the debt settlement company? or can i do it myself? is there a non-profit company that can help me??