Many Americans are up debt creek without a paddle dreaming of a way to pay off all their bills without declaring bankruptcy. Some are dazzled by the ads claiming that government grants can assist them in this endeavour. The government does set aside billions of dollars each year to fund grant programs and distributes them to government institutions, private organizations, and, yes, even individuals.

Grants are available for various causes. Individuals and families might find grants to help with student loans, medical bills, and mortgage/foreclosure assistance. These grant programs are not entirely altruistic. When a large portion of the country is riddled with personal debt, individual discretionary spending lessens. Less money spent by the average citizen causes demand for goods and services to diminish. When demand lessens, the economy depresses. The government prefers to ensure that Americans have enough money to spend to keep the economy stimulated.

It's getting a hold of this grant money that is tricky. Simply filling out a form to receive a check that will magically pay off all of your bills is not realistic. The only time that remotely happens is when a tax rebate is issued. Instead, the government prefers to issue grants to private, non-profit, and government institutions to provide debt relief to Americans. Paying careful attention to where the grant money is awarded will help you ascertain where debt relief can be obtained.

The best place to monitor the money trail is on the government grant web site or the web site for the Catalog for Domestic Assistance. Both sites list what grants are available and provide information on who is eligible and how to obtain the funds.

While there aren't any grants aimed at paying off credit cards and unsecured loans as of yet, this could change. Grant availability changes with the whims of the government, so monitor the government web sites regularly.