The Myths Surrounding Debt Relief

Getting help with your debt isn't some complicated endeavor. Finding debt relief involves nothing more than a willingness to take action when it comes to your money issues. Many resources are available to help you finally overcome your struggle with debt. Dispelling some key myths should give you the clarity needed to pursue the assistance you need.

You Have To Own A Home To Get A Loan

Having a home will make it easier for you to get help with your debt. Qualifying for a home equity loan can be the best way to consolidate your bills. However, this is not the only way to consolidate all of your debts into one monthly payment. Using your home is simply the best way to secure your loan using collateral. Home values are generally going to be higher than any other asset you may have. Lenders are going to feel more at ease knowing that your home is backing the loan. Using your home to secure a loan can also score you a lower interest rate on the loan.

Debt Relief Doesn't Hurt Your Credit

Going to a debt relief service could very well hurt your credit score. Some lenders could react as if you had just filed for Chapter 13 bankruptcy. Filing for bankruptcy could hurt your credit score for many years to come. Make sure that your creditors are alright with you enrolling in a debt relief program. Trying to come up with a debt settlement on your own might be the better move for you. On the other hand, going into debt relief will not necessarily lower your credit score. An increase in your credit score could be the short-term result depending on your financial situation.

Your Credit Score Never Recovers

Maybe you read somewhere that your credit score never recovers after going through debt relief. This is simply not the case as your credit report is not a static document. Your credit report is only going to show your financial history for the previous seven years. Filing for a bankruptcy could result in that showing up on your credit report for up to a decade. Nothing that has happened more than seven years ago is going to be revealed to any future lenders. This means that even a hit to your short-term credit score will be wiped out by the benefits that can be gained from debt settlement.

Credit Consolidation Only Lowers Your Interest Rate

Yes, your interest rate is going to be lower if you consolidate your debt. However, a good debt relief service will negotiate a lower balance for you as well. This lower balance is going to be a big help in your effort to pay down your debt as fast as possible. The biggest reason that you are going to pay a lower balance is because your creditors will usually waive late charges and other penalties. Creditors are usually willing to cut your debt balance by as much as half of what you originally owed.

Many myths about debt relief continue to persist. These myths can cause many hard working people to abandon any plans to seek out the help that they need. Not taking advantage of all available resources out there will only cause you more hardship. Why should you pay so much each month when you don't have to? Debt is a burden that you do not have to handle on your own. Don't believe everything that you read on the Internet. Talk to a debt relief professional to see if there is anything that can be done to help you out.         

Free Quote Form
First Name:
Last Name:
Phone No.:
--
Email :
Debt Amnt:
State:
Privacy Information
Privacy Policy.
 

Benefits of Credit Consolidation

  • Make ONE payment per month
  • Reduce your payments by up to 55%
  • Stop creditors harrassment with Credit Consolidation
  • You will only speak with a certified credit consolidation counselor
  • Absolutely no credit checks or obligations