# Are There Grants to Pay Off Credit Card Debt?

URL: https://debtcheckusa.com/credit-card-debt/grants-to-pay-off-credit-card-debt
Updated: 2026-09-15
Review: Reviewed by Netanel Baruch, NFCC-certified credit counselor

No government grant pays off personal credit card debt, and offers of free grant money are scams. Here's what can free up money, and the red flags to watch for.

There are no federal grants to pay off credit card debt. [USAGov says the government doesn't offer free money or grants to people for personal needs](https://www.usa.gov/government-grants-and-loans), and the FTC says [offers of free money from government grants are scams](https://consumer.ftc.gov/articles/government-grant-scams). What can help instead is a hardship program with your card company, benefits for food or utility bills, or nonprofit credit counseling.

- The federal government doesn't give people grants for personal needs like credit card bills. Federal grants typically go to states and organizations.
- The FTC says no government agency will ask you to pay to get a grant, pay with a gift card or wire transfer, or give your Social Security or bank account number by call, text or email.
- Your card company may let you postpone a set number of payments, or pay a lower monthly payment at a reduced interest rate until the balance is repaid. Call before you fall further behind.
- Benefits such as SNAP for food and LIHEAP for heating and cooling bills can ease your budget, so more of your pay can go to your cards.
- A nonprofit debt management plan can take 48 months or more. Debt settlement often comes with expensive fees and can hurt your credit, and you can be sued while you wait.

This guide is one part of a bigger plan for [how to get out of credit card debt](https://debtcheckusa.com/credit-card-debt/how-to-get-out-of-credit-card-debt).

## Why "debt grants" are usually scams

The federal government does give grants, just not to people for their own bills. USAGov says federal grants are typically only for states and organizations. The FTC says the government [won't offer you free government grants of any kind, much less grants to pay for home repairs, medical costs or other personal needs](https://consumer.ftc.gov/articles/government-grant-scams).

Grant scammers work around that. The FTC says they put ads online for fake government grants. Some call using a fake number that shows up on your caller ID as a federal or state government agency, and some send texts, emails or social media messages. What they want is your money or your personal information.

You can check a real federal grant yourself. The FTC says the only place to find a list of all available federal grants is Grants.gov, and that list is free. [Grants.gov says](https://www.grants.gov/learn-grants/grant-fraud/grant-related-scams.html) the government doesn't charge individuals a fee to apply for a federal grant. It also says anyone who claims a grant needs no application, or only a phone call or an email, is trying to scam you.

## What can free up money this month

### Ask your card company for a hardship program

If you can't pay your credit card bills, the CFPB says to [contact your credit card company immediately](https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-cant-pay-my-credit-card-bills-en-1697/). Tell them why you can't pay the minimum, how much you can afford and when you expect to resume normal payments.

Many card companies have hardship programs, also called forbearance or loss mitigation programs. The CFPB says these programs [often let you postpone a set number of monthly payments, or pay a lower monthly payment at a reduced interest rate, until you repay the balance in full](https://www.consumerfinance.gov/about-us/blog/need-help-your-credit-card-debt-start-your-credit-card-company/). Get written confirmation of any arrangement you agree to.

### Use benefits for the basics

The government doesn't pay card balances. It does offer [benefits that may help you pay for food, housing, health care and other basic living expenses](https://www.usa.gov/benefits). If a benefit covers part of your grocery or utility bill, the money you would have spent there can go to your cards.

- [USAGov's benefit finder](https://www.usa.gov/benefit-finder) asks some basic questions and gives you a customized list of benefits you may be eligible for.
- [SNAP (food stamps) can help you pay for food if you have a low income](https://www.usa.gov/food-help).
- [LIHEAP and WAP help pay for heating, cooling and home weatherization](https://www.usa.gov/help-with-utility-bills). The same USAGov page covers Lifeline, which helps people with a low income get discounted phone or internet service.

Each benefit has its own eligibility rules, so check before you count on one.

### Put the money you free up into a payoff plan

Money you free up only helps if it goes to the debt. The CFPB describes two ways to order it. With the snowball method, [you keep making the minimum payments on all of your debts and put any extra funds toward the smallest one](https://www.consumerfinance.gov/about-us/blog/how-reduce-your-debt/). Once that debt is paid in full, the freed-up money goes to the next smallest. The highest interest rate method aims to pay off your highest-rate debt as quickly as possible, because it's costing you the most. [Debt avalanche vs snowball](https://debtcheckusa.com/credit-card-debt/debt-avalanche-vs-snowball) runs both on the same debts.

Tool: [Payoff planner](https://debtcheckusa.com/credit-card-debt/tools/payoff-planner). Avalanche or snowball: your debt-free date and what each order costs.

**Pay it off yourself with a plan.** Good when: Your balances go down at the budget you have. Watch out: It needs a steady monthly budget, and nobody negotiates for you.

## Nonprofit and local help

A nonprofit won't pay your card balances for you. A nonprofit credit counselor can help you work out how to pay them. The CFPB says [credit counseling organizations are usually non-profit organizations](https://www.consumerfinance.gov/ask-cfpb/what-is-credit-counseling-en-1451/) that advise you on your money and debts, help you with a budget, develop debt management plans and offer money management workshops. Working with a counselor can be a way to get free or low-cost financial advice.

Counselors [can't erase your debts, and they don't always negotiate reductions in the amounts you owe](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/). They work on lowering your overall monthly payment, for example by getting creditors to lower interest rates or give you longer to repay.

In a debt management plan, you make a single payment to the counseling organization each month or pay period, and it pays each of your creditors. Before you sign up, weigh two things:

- A plan [can take 48 months or more to complete](https://consumer.ftc.gov/articles/how-get-out-debt), and you might have to agree not to apply for or use any more credit until it's finished.
- Counselors may charge fees for some services. The FTC says being a nonprofit doesn't mean an organization's services are free or affordable, so ask what you'll pay first.

To find a counselor:

- The CFPB suggests starting with the Financial Counseling Association of America or the [National Foundation for Credit Counseling](https://www.nfcc.org/).
- The FTC says [your local credit union, university, community college or military personal financial manager might offer low-cost credit counseling programs](https://consumer.ftc.gov/consumer-alerts/2026/03/looking-debt-relief-heres-how-avoid-scam).
- A reputable counseling organization should send you free information about its services before you say anything about your situation.

**Nonprofit credit counseling.** Good when: Card rates are high and one lower payment would get you there. Watch out: You may have to stop using or applying for credit, and a plan can take 48 months or more. Ask about fees first.

## If you're already behind

Call your card company even if you've already missed payments. Missed payments stick around: [a delinquency can stay on your credit report for up to seven years](https://www.consumerfinance.gov/about-us/blog/need-help-your-credit-card-debt-start-your-credit-card-company/).

You may also see debt settlement pitched as the realistic alternative to a grant. Debt settlement companies offer to resolve your debts for a fee, usually with lump sums you save up before a settlement. Before you talk to a salesperson, know what can go wrong:

- Settlement companies [often charge expensive fees](https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-relief-program-and-how-do-i-know-if-i-should-use-one-en-1457/).
- When you stop paying your creditors, you'll usually get late fees, penalty interest and other charges. Your credit scores can suffer, and a creditor may file a lawsuit against you.
- Creditors may refuse to negotiate, and built-up penalties and fees on debts that don't settle can wipe out any savings.
- The FTC says [any savings you get from debt relief services could be considered income and taxable](https://consumer.ftc.gov/articles/how-get-out-debt).

The FTC's [Telemarketing Sales Rule](https://www.ftc.gov/business-guidance/resources/debt-relief-services-telemarketing-sales-rule-guide-business) limits when a settlement company can be paid. A debt relief company can't collect a fee until it has renegotiated, settled, reduced or otherwise changed the terms of at least one of your debts, you've agreed to that result, and you've made at least one payment to the creditor under it. The rule covers calls the company makes and calls you make in response to its ads. It applies only to for-profit companies, though it still covers companies that falsely claim nonprofit status. Companies that meet you face-to-face before signing you up are exempt. The FTC's own advice to consumers is simpler: only scammers will try to collect fees from you before they settle any of your debts.

For the full costs, the taxes and a worked example, read [debt settlement pros and cons](https://debtcheckusa.com/credit-card-debt/debt-settlement-pros-and-cons).

**Debt settlement.** Good when: You have large unsecured debt and are already falling behind. Watch out: It damages your credit, charges fees, forgiven debt can be taxed, and creditors can still sue.

## Red flags: how to spot a debt grant scam

The FTC, Grants.gov and the CFPB describe these signs. Any one of them is reason to hang up:

- A call, text or message out of the blue. The FTC says the government won't get in touch out of the blue about grants, and Grants.gov says it doesn't contact people to award grants they never applied for. Caller ID can be faked to look like a government agency.
- A fee. The FTC says not to pay for a list of government grants or pay any up-front fees. No government agency will contact you to demand that you pay to get a grant.
- An odd way to pay. No government agency will ever ask you to pay with cash, a gift card, a cash reload card, a wire transfer or cryptocurrency.
- A request for your Social Security or bank account number so you can "qualify." Government agencies will never call, text, message you on social media or email to ask for your Social Security, bank account or credit card number.
- Pressure to act right now. The FTC says scammers [pressure you to act immediately](https://consumer.ftc.gov/articles/how-avoid-scam).
- A debt company saying the government will bail you out. The CFPB says to avoid doing business with any company that touts a "new government program" to bail out credit card debt, or that tells you to stop communicating with your creditors.

**Report a grant scam**
If someone offered you a grant and asked for money or personal information, report it to the FTC at [ReportFraud.ftc.gov](https://reportfraud.ftc.gov). The FTC shares reports with law enforcement partners to help with investigations.

## Bottom line

No federal grant will pay off your credit card debt, and an offer of free government grant money is a scam. The things that do help are slower. Call your card company early, use the benefits you qualify for, and put what you free up toward a payoff plan. If that isn't enough, talk to a nonprofit credit counselor before you consider settlement. The Debt Check shows which options fit your numbers.

Start the Debt Check: https://debtcheckusa.com/debt-check

## Common questions

### Are there grants to pay off credit card debt?

Not from the federal government. USAGov says the government does not offer free money or grants to people for personal needs, and that federal grants are typically only for states and organizations. The FTC says offers of free money from government grants are scams.

### Does the government pay off credit card debt?

No. It does offer benefits that help pay for food, housing, health care and other basic living expenses. If a benefit such as SNAP or LIHEAP covers part of those costs, more of your income can go to your cards.

### Is a debt relief grant a scam?

An offer of free government grant money is a scam, the FTC says. Other signs: a fee to get the grant, a request to pay by gift card, wire transfer or cryptocurrency, or a call or message asking for your Social Security or bank account number. You can report it at ReportFraud.ftc.gov.

### Are there charities that help pay off credit card debt?

Nonprofit credit counseling organizations can help, though not by paying your balances. A counselor can go over your budget and may set up a debt management plan, where you make one payment to the organization and it pays your creditors. Counseling is often free or low-cost, but counselors may charge fees for some services.

### What should I do if I can't pay my credit card bills?

Contact your card company right away. Explain why you can't pay the minimum, how much you can afford and when you expect to resume normal payments. Ask about a hardship program, and get written confirmation of any arrangement you agree to.

### Can a debt settlement company charge fees before it settles my debt?

Not if the FTC's Telemarketing Sales Rule covers it. A for-profit company selling debt relief by phone can't collect a fee until it has settled or changed the terms of at least one of your debts, you've agreed to that result, and you've made at least one payment under it. The FTC says only scammers will try to collect fees before they settle any of your debts.

## Sources

- [FTC: Government Grant Scams](https://consumer.ftc.gov/articles/government-grant-scams)
- [USAGov: Government grants and loans](https://www.usa.gov/government-grants-and-loans)
- [Grants.gov: Grant-Related Scams](https://www.grants.gov/learn-grants/grant-fraud/grant-related-scams.html)
- [CFPB: What should I do if I can't pay my credit card bills?](https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-i-cant-pay-my-credit-card-bills-en-1697/)
- [CFPB: Need help with your credit card debt? Start with your credit card company!](https://www.consumerfinance.gov/about-us/blog/need-help-your-credit-card-debt-start-your-credit-card-company/)
- [USAGov: Government benefits](https://www.usa.gov/benefits)
- [USAGov: Find government benefits and financial help](https://www.usa.gov/benefit-finder)
- [USAGov: Food assistance](https://www.usa.gov/food-help)
- [USAGov: Help with utility bills](https://www.usa.gov/help-with-utility-bills)
- [CFPB: What is credit counseling?](https://www.consumerfinance.gov/ask-cfpb/what-is-credit-counseling-en-1451/)
- [CFPB: What is the difference between credit counseling and debt settlement, debt consolidation, or credit repair?](https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-credit-counseling-and-debt-settlement-debt-consolidation-or-credit-repair-en-1449/)
- [FTC: How To Get Out of Debt](https://consumer.ftc.gov/articles/how-get-out-debt)
- [FTC: Looking for debt relief? Here's how to avoid a scam](https://consumer.ftc.gov/consumer-alerts/2026/03/looking-debt-relief-heres-how-avoid-scam)
- [CFPB: What is a debt relief program and how do I know if I should use one?](https://www.consumerfinance.gov/ask-cfpb/what-is-a-debt-relief-program-and-how-do-i-know-if-i-should-use-one-en-1457/)
- [FTC: Debt Relief Services & the Telemarketing Sales Rule: A Guide for Business](https://www.ftc.gov/business-guidance/resources/debt-relief-services-telemarketing-sales-rule-guide-business)
- [FTC: How To Avoid a Scam](https://consumer.ftc.gov/articles/how-avoid-scam)
- [CFPB: How to reduce your debt](https://www.consumerfinance.gov/about-us/blog/how-reduce-your-debt/)