At times, when people don’t know what to do with their debt, those debt ads never fail to lift their spirits up. It is a fact that credit card delinquencies can haunt you even in sleep, and the next thing you know you’re already hiring someone who you thought could solve your problem.
This is just one of the numerous effects that debt myths can give. If you don’t want to make your problem worse, better read this article and determine which debt ad is a reality-based and which the myth is.
When you are left with no choice
When you have no other choice, but to consult a debt settlement company is the total opposite of reality. You can always settle a debt on your own. You can talk to the credit card company by yourself without the assistance of any agent from any company.
The entire negotiation can start by calling your credit card company and everything else will follow. Because of this myth, many people are wasting cash with the thought that these debt agents can truly help them.
Negotiators and agents are saints
Technically, this is another myth you should stay clear from. These agents are ordinary people working to make money. They’re not saints who can spare you from being behind bars because of a debt. More to that, the money you pay them is based on various financial experts- better off be paid to your debts.
Debt settlement won’t affect credit score
Just like bankruptcy, debt settlement can also affect your credit score. Most people opt for settlement with this thought, but on the contrary, the effects of filing a bankruptcy and having a debt settlement are quite the same.
The effects will come into the picture once your settlement was granted or one you skipped payments. However, asking for it won’t matter at all as long as the settlement is not yet granted.
Debt settlement is the best option
If you think bankruptcy will have detrimental effects on your credit score and history that thought is a fact. However if, you think that debt settlement is your one and only chance, better think again.
There are many other options you can try to fix your credit card dilemma without ruining your credit score. You don’t have to file bankruptcy or debt settlement. Depending on your debt, creditors sure have something in mind that can help you out.
Won’t spend a dime with debt settlement
This is one of the most common myths, there is, and at the same time the most crucial, as well. There’s no such thing as free debt settlement. With it, you will need to spend hundreds of dollars just to settle your debt, not to erase it totally. Furthermore, your cost will increase if you’re hiring a debt negotiator.
Dealing with a long list of debts is indeed a weighty problem. However, it is still an insufficient reason for you to opt for debt settlement. There are many other options you can do to clear your debts. Feel free to talk to your credit card company instead of relying on these too-good-to-be-true myths.