How to Find Personal Grants to Pay Off Debt

You have grant options if you're deep in debt and need assistance.

If you're looking for a grant to help get out of debt, realize that federal and state governments don't offer personal grants to simply pay creditors or turn a financial crisis around. Unless you're applying for a specific type of assistance, such as an education grant or a loan forgiveness program, you'll need to find private groups that offer personal grants to worthy applicants. There are resources available if you're in dire financial straits.


Step 1

Locate private groups such as churches, charitable organizations, businesses, women's clubs, alumni foundations and non-profit organizations offering grants to assist individuals in times of hardship. Many of these groups offer money raised through fundraisers, benefits and private donations and are able to award personal grants to the most worthy applicants based on need.

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Step 2

Approach private or non-profit groups professionally when inquiring about personal grants. Although they offer grants to help individuals get out of debt, they will have procedures in place to appease donors or a board of directors. Unless you're receiving a personal loan from a friend or family member, you still will need to complete an application and go through an interview process to determine eligibility, just as you would if applying for a government grant.


Step 3

Write a concise cover letter clearly outlining why you need a personal grant to pay off your debt. Discuss your previous work experience, your current employment and your family situation. Tailor your letter to the group you're approaching for a personal grant -- if it's a group that supports single mothers, for example, outline how long you've been living on your own and acting as the sole provider for your family.

Step 4

Determine if there are government grants available for the specific type of debt problem you're experiencing. Sites such as provide a search engine to help individuals find grants to pay off debt under programs for career development, disability assistance, disaster relief, education or housing, for example.


Step 5

Think long-term if you receive a personal grant to temporarily ease your financial crisis. Once you have a little breathing room, find a government grant to help get out of debt by receiving an education grant or small business grant that will enable you to complete your education or help your company succeed. Although these aren't directly grants for personal needs, the ability to complete your college education can improve your qualifications and eligibility for a higher-paying job that will, in turn, help reduce debt.


Steer clear of companies that claim to offer a listing of personal grants to pay off debt for a processing fee. Also avoid organizations that ask for an application fee for a grant that they claim can be used to pay off mortgage debt or help you reduce personal debt.