7 Myths and Truths about Debt Settlement

Myths and legends are really interesting stories that it comes to the point that people

believe and see them as truth.

In fact, the world has an array of myths from its creation to how it’s going to end and

every culture has their very own version. Relatively, when it comes to debt and financial

management, there are also myths that the majority believe.

Now, let’s debunk those myths and uncover the truth about debt settlement. As the

famous saying goes, “it will set us free.”

Be debt-free perhaps, here are some famous myths about debt settlement and the truth

about them.

First Myth: It’s impossible to cut your total debt to nearly half

Believe me, it is possible! In fact, based on testimonials of those who enrolled in a

good settlement program, they’ve successfully cut down their total principal debt

amount up to 40 to 60 percent. The expertise of a renowned debt settlement firm is very

beneficial in making it happen. The foundation of any debt settlement programs

depends on your feasible budget. It also depends on your capability to save to

compensate current financial situation. Another important variable that influences your

forgiven debt percentage is TIME. The earlier you can settle your debt the more likely it

can be cut down in a much lower rate.

Second Myth: Settlement is a waste of time, you can pay debt yourself

“No man is an island” because more brains are better than one. Even though it’s true

that you can just D.I.Y. everything on paying off, debt settlement programs is not a

waste of time.

Honestly, it can save you a lot of time and a lot of money too. Debt settlement

consultants and negotiators can guide you on how you can pay off your debt wisely,

thus, saving you a lot of valuable time.

Third Myth: Debt Settlement companies control my money

Contrary to common belief, debt settlement companies do not control your money. All of

your savings will be placed in a trust fund until such a time that it’s sufficient enough to

pay off your debts. The firm will tell you when you can do the first settlement and will

ask for your approval before making any action about your savings. So basically, you‘re

still on the steering wheel and still in control.

Fourth Myth: Debt settlement companies charge a lot for their service

It’s obvious that every business must make money to continue their operations. In the

case of debt settlement companies, of course, they charge you for their service.

Understanding and reviewing carefully the settlement plan you signed up gives you an

edge on whether the program is legit.

Please take note that a reliable and trustworthy debt settlement firm will not charge you

a lot of cash and they will not force you to pay initially before enrolling you to their

program.

If a debt settlement company tells you to pay them first, think twice, it’s probably bogus.

Furthermore, good debt settlement companies must aim to help you in dealing

your debt and not to be an additional burden to your pocket.

Fifth Myth: You cannot be debt-free with debt settlement

Freedom comes with great responsibility. Debt settlement programs can only negotiate

unsecured debts such as credit card debt, commercial debt, medical debt, automobile

repossessions, utility collections, and other non-collateralized loans.

On the other hand, settlements programs are your first step in being debt-free.

Yes, you heard it right.

Here’s a classic example, when you enrolled in a settlement program, it will be

convenient to you to save the one monthly payment scheme. During this time and you

can also manage to pay all your secured debt not covered by the debt settlement

program.

Sixth Myth: Bankruptcy is the better option than Debt Settlement

It sounds ridiculous because obviously, bankruptcy will cause more damage to your

credit report than a debt settlement.

In fact, Chapter 7 and Chapter 11 bankruptcies will remain on your credit report for

ten long years from the day of filing.

Further, filing a bankruptcy case can be an expensive action. For added information,

Chapter 7 bankruptcies are limited by strict income requirements and Chapter 13

bankruptcies will require you to pay a portion of your debt within a five year period.

Debt settlement programs, however, place you in a position where you can manage to

pay off all your debt in the most convenient and worry-free manner.

If you persist in believing in this myth and still pursuing filing a bankruptcy, please get

ready for a life without a good financial reputation.

Seventh Myth: Settlement program is only for those with stable jobs

Who say so? Honestly, debt settlement programs deal with an individual who

experiences “hardships.” This condition includes someone who are temporarily

unemployed, someone who work in unstable and low-income jobs and someone who

experience divorce or suffer serious medical problems.

Don’t worry about it too much. Enrolling in a settlement program will lessen up the

effects of financial hardships and makes everything alright.

Eight Myth: Debt Settlement and Debt Consolidation are the same

No, it’s not, settlement and consolidation are two different ideas. Let’s get things

straight, debt settlement program negotiates with your creditors for you to pay off less

than your total debt amount. On the other hand, debt consolidation will give a secured

loan for you to be able to pay off your total debt amount. Settlement lets you save while

consolidation puts you into another debt contract.

What better time than NOW!

We’ve uncovered the truths over the myths on debt settlement. Now, you don’t have to

worry about your debts. Talk to our certified debt consultant to discuss your financial

situation. Call us Financial Rescue now at 1-877-97-DEBTS and unravel the benefits

of enrolling in a well-planned settlement program.