Debt Grants: Voluntary Participation

2007-05-02 10:04:19

( Financial )



PAYMENT RESPITE

Debt grants allow you some respite from the constraints of debt payments. You may avail of debt grants or debt relief grants from organizations where you are indebted to.

Not all lending entities offer debt relief grants; banks and private lending institutions would not offer debt grants because that may mean the end of their business. Debts are primarily the main income generating resource of these companies, and to offer debt relief grants is out of the picture.

Debt grants are often issued by federal lending agencies to encourage borrowers to clean their debt. What makes these debt grants so attractive is that they take away all the interest payments, leaving you to pay only the principal loan amount. If you have a federal loan that you have defaulted on for fear of the interest charges, this is your chance to close your debt and clean your credit history.

FEDERAL DEBT RELIEFS

The most common type of debt relief grants are extended to federal student loans. Although debt grants are helpful in your desire to become debt free, you should pay close attention because these debt relief grants are not being offered regularly, and when they are, last only about a month or so. Therefore it is important that you avail of these debt grants during the small window when they are being offered.

Of course entering debt relief grants is a commitment. Make sure that you have the capacity to pay before entering into any agreement. Defaulting on a debt relief program can be more damaging because the program is voluntary; nobody is forced to enter debt grants. It is being offered to those who would like to be given the chance to pay their debt without interest. If you default on debt relief grants, then you have nobody to blame but yourself.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.