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Debt Clearance Grant
Second Chance Financial Stability Network
- Funding
- $100,000 – $250,000
- Deadline
- Oct 21, 2026
- Eligibility
- Individuals carrying verified consumer or medical debt, paired with a mandatory financial counselling component.
Debt Clearance
Debt Relief & Debt Clearance Grants
Debt clearance grants from $100,000 to $250,000 paid directly to verified creditors, with financial counselling. See eligibility and how to apply.
Debt Relief Grants, explained honestly.
Debt relief grants pay down verified debt without creating a new loan. The award goes to creditors, not to the applicant, and is usually paired with financial counselling so the relief lasts beyond the first statement.
The Second Chance Debt Clearance Fund in our catalogue provides $100,000 to $250,000, paid directly to verified creditors. Applicants commit to a 12-month financial stability plan; counselling is included at no additional cost.
This page explains the difference between a debt grant and consolidation, what documentation creditors require, and how to prepare an application that survives verification.
Last reviewed Aug 29, 2026. Programme rules and deadlines can change — always confirm details on the official source before submitting.
Who typically qualifies
- Adults aged 21 or older.
- Documented consumer or medical debt with current creditor statements.
- Proof of regular income, such as recent pay stubs.
- Willingness to complete mandatory financial counselling.
- No active fraud flags, undisclosed debt or pending litigation.
- A 12-month post-award financial stability commitment.
What the funding covers
- Verified consumer debt balances.
- Verified medical debt balances.
- Creditor verification and settlement coordination.
- Mandatory financial counselling at no extra cost.
- A 12-month financial stability plan.
Live Opportunities
Current Debt Relief Grants.
Every listing below is researched and verified. Open an opportunity for full eligibility detail, required documents and the official source link.
Application Path
How to apply, step by step.
The same five-stage path applies whether you handle the application yourself or engage FedOP for support.
- 01
Gather debt statements
Collect recent statements for every debt you want cleared. Undisclosed debt is a disqualifier, so include everything upfront.
- 02
Submit income proof
Three recent pay stubs or equivalent income documentation support the affordability assessment.
- 03
Complete the screening call
A case worker confirms the file, explains the counselling requirement and answers questions before creditor verification.
- 04
Creditor verification
The programme contacts each creditor to confirm balances and settlement terms. Only verified accounts are paid.
- 05
Award and counselling
Funds are paid directly to verified creditors, and the 12-month counselling engagement begins.
Not sure whether your file is ready? A short intake is enough for us to confirm fit and map a realistic application path.
Start intakeFAQ
Debt Relief Grants, Answered.
Direct answers to the questions applicants ask most often about this category.
Full grant FAQIs a debt relief grant the same as debt consolidation?
No. Consolidation replaces multiple debts with a new loan you repay. A debt clearance grant pays verified creditors directly and does not create a new repayment obligation.
Will a debt grant hurt my credit score?
Settling or closing accounts can affect credit scoring, and outcomes vary by creditor and credit model. The programme does not promise a score improvement; it removes verified balances.
Can I receive the money as cash?
No. Funds are paid directly to verified creditors. This protects both the applicant and the programme and ensures the award actually clears debt.
Is debt relief taxable?
Forgiven or settled debt can be treated as taxable income in some jurisdictions. The programme provides documentation, but you should confirm your position with a qualified tax professional.
What if one of my creditors will not participate?
Only verified, participating creditors can be paid. If a creditor refuses verification, that account falls outside the award — the rest of the file can still proceed.
FedOP supports applicants in the United States, Canada, Australia, the United Kingdom and participating global programmes.
Ready to Take the Next Step?
Your next funding opportunity starts here.
Tell us about your goals and let FedOP help you navigate the next step.
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