• Debt is a growing problem for many consumers.Blue pen in front of invoice image by millann from Fotolia.com
  
  Though many websites advertise that consumers can apply for governmental grants specifically for "debt relief," the claim is not true. There is no specific federal program which provides a lump sum payment to a consumer to rid herself of debt. Notwithstanding, there are numerous, government-funded programs that can help a debt-burdened consumer.
  
  

Credit Counseling Agencies and Debt Reduction Firms

• Is cash flow a problem?stack of cash image by jimcox40 from Fotolia.com
  
  There are government-subsidized, non-profit counseling services, both state and private, which provide assistance to debtors for free. Such counseling enables consumers to negotiate less burdensome repayment schedules with their creditors.
  
  A debt reduction company, however, will charge a fee for services rendered. Primarily, debt relief is accomplished through renegotiation of interest rates directly with a client's creditors, often reducing both his monthly payments as well as his long-term costs.
  
  

Government Grants

• Don't let your loans become liens.form -3 image by Rog999 from Fotolia.com
  
  The U.S. Government features a web site featuring grants in three categories: government benefits, student loans and small business start-up loans.
  
  Clicking "Benefits" brings up more than 20 targets, though none are titled, "Debt Relief." However, choosing Loan/Loan Repayment will link you to numerous programs, which are categorized as follows:
  
  Mortgage insurance and loan guarantees: 6
  
  Small business loans: 7
  
  Repaying research loans: 8
  
  Disaster loans: 4
  
  Education loan consolidation: 1
  
  Farm loans: 3
  
  Grants to needy students: 1
  
  Grants to fisheries:1
  
  Hope for Homeowners (refinancing in lieu of foreclosure): 1
  
  Health service loan repayments: 4
  
  Home loans to Native Americans: 1
  
  Student loans for parents: 1
  
  VA loans:5
  
  Maybe not cash in your pocket, but all are designed to reduce your cost of living.
  
  

Searching for Benefits

• Help from Washington?Capitol Building image by dwight9592 from Fotolia.com
  
  Another federal website featuring government benefits prompts visitors to complete a questionnaire, formulated to determine potential eligibility. For instance, entering the profile of a single, middle-aged male without minor dependents with a household income below the poverty level yields about 50 assistance programs, including grants, loan guarantees and fellowships.
  
  Low-income parents with small children can anticipate over a hundred options from which to seek assistance.