If you are heavily in debt, now is not the time to beat yourself up about it. Almost everyone is in the same boat. That’s one of the reasons the government has recently started offering relief options for the average citizen. There is government help for debt consolidation. You can also take advantage of private options to get a better financial position. Here are some options to choose from.

government loans

There are government loans that you can apply for. Most of these have better payment terms than what you can get at a traditional bank or lending institution. They may even be tax deferred. Some will need to be used for specific types of debt, like a student loan or mortgage, while others will be more flexible. You can see what’s available by visiting the federal government’s main website. You can also inquire at a social services agency or through a lawyer or accountant who is more familiar with these types of offers.

get a grant

A grant is a gift of money that does not have to be repaid. When the stimulus bill passed, a significant portion of the funds were set aside to help stimulate the rebuilding of the economy. The money is already there and you just have to figure out how to get a piece of it. Again, these are available from the same website as above and can be requested for free. You can apply for multiple, if you qualify. You can eliminate student loans, pay to renovate your home, or even apply some directly to a credit card balance.

consolidate debt

There are also many private options for achieving debt consolidation. If you run into walls getting government help, don’t give up. Look at a company that specializes in eliminating debt for its clients. There are several things a service can do for you, including negotiating lower payments, brokering a payment plan, and even settling debts permanently. This is often much easier than trying to go back and forth with creditors yourself.

What are friends for?

No one wants to see a friend or loved one in the fight. That is why you may find that those close to you are willing to give you a break and lend you some money to get well. This can work very well for debt consolidation if handled correctly. It is best to make the agreement legal and binding to protect you and the lender. Be sure to take this arrangement seriously to avoid problems and hard feelings.