Consolidating debt is a process that consists on replacing expensive and/or short term debt with cheap debt with longer repayment programs. Basically, consolidation can be achieved either by negotiating with creditors new loan terms or by obtaining a loan that meets the above guidelines (cheaper and/or longer term) to repay outstanding debt.



Thus, getting a government grant in order to eliminate debt can never be "debt consolidation". Besides, it is very unlikely that the government would destine money to repay someone's debt with no guarantee whatsoever that the borrower won't apply for new loans or credit cards.

Government Grants

A government grant is an endowment awarded by government agencies to individuals and organizations that meet certain requirements. Government grants are meant for assisting those who are underprivileged or have special needs. Someone who is deeply in debt does not necessarily have to qualify for a grant for the sole reason of being in debt.

Government grants are offered for those who want to buy their first home, to those who are starting a business and need finance in order to make everything work, to those who want to investigate on certain fields that the government has a particular interest on developing, etc.

Specific Requirements

In order to apply for a government grant you need to meet specific requirements that each grant type has as a qualifying criteria. So, as you can see, offering grants for debt consolidation widely, to anyone that wants to apply has no other purpose than to take advantage of people's financial difficulties. That financial aid cannot be provided by those who claim they can.

And that's the main reason why you need to beware of those companies that offer that kind of service. There are many legit online companies offering access to information, links and thorough explanations on government grants. Sometimes they even offer copies of the application forms and models of letters that need to be sent to government agencies. However, none of these companies will claim to offer consolidation through government grants. If they do, you should steer clear of them since chances are you are probably facing a scam.

There are trustworthy government and private online sites

If you are alert enough, you have nothing to worry about. You can do a thorough investigation by searching the net for government grants and read all the information that online sites provide. You'll be able to find the government agencies' sites and private sites too. Within these sites you'll be able to find all you need to know to apply for a government grant and as long as you follow the previous advice and be wary of consolidation grants you won't be taken in.