The reality is that debt relief could help you.
Credit card debt is common in the United States. Some studies say that 7 in 10 Americans have at least one credit card and that as of March 2019, Americans owe over $1 Trillion to credit card issuers. If you’re one of the 70% and looking for ways to get out of debt, you’ve probably thought about debt relief.
There are, however, a lot of myths about debt relief. Let’s take a look at three of the biggest ones.
Myth: Negotiating for a debt settlement is unethical.
Fact: It isn’t.
The people who want you to think that it’s unethical are the same ones who helped you get into debt in the first place—credit card issuers. They want you to think it’s unethical so you will continue making their high-interest payments for years and years to come. Their job is to maximize their profit. So, they’ll take every chance they get to raise your rates and charge you additional fees to keep you in debt as long as possible.
While there are people who use credit irresponsibly, most people who turn to debt settlement have encountered an unexpected situation like medical bills, loss of a job, divorce or other circumstances beyond their control.
Myth: Debt consolidation loans, credit counseling, and debt settlements are all similar.
Fact: They’re completely different from one another.
Three common options for people who want to handle large debt problems are credit counseling, debt consolidation, and debt settlements.
Here is a brief summary of the pros and cons of each one:
- Debt consolidation typically takes the form of a loan. Such loans normally require borrowers to either have excellent credit or to secure the loan with a home or another valuable asset. This method can reduce your monthly payments and protect your credit. The downside is that it can be expensive, take years to repay, and put your home at risk.
- Debt settlement won’t necessarily stop collection actions while you’re enrolled in the program. It will provide a lower monthly payment, reduce the amount of debt you pay overall and get you out of debt faster than simply paying your minimums.
- Credit counseling will probably protect your credit score, but you may end up extending the term of your loan and paying more in interest. Because it can take so long, and increase the amount of overall interest you pay, it’s common for people to drop out of the program before the debts are all repaid. That can start the cycle all over again.
Myth: Credit reports show the unpaid balance on debt settlements.
Fact: Debt settlement helps you resolve your debts once and for all.
At the most basic level, your credit report shows the balances you owe and to whom. Settling a debt, however, is different. When one of your creditors agrees to debt settlement, you no longer owe them the forgiven balance. So that balance doesn’t show up on your credit report. When lenders report the debt settlement to credit bureaus, the debt balance goes down to zero.
There are occasions where the lender will try to get you to agree to be liable for the difference, when it would show on a credit report. Never agree to this. In fact, don’t try to handle debt settlement without the help of a professional that has an established history of settling debts.
The truth about CreditAssociates.
We understand debt relief and know how to negotiate with creditors. You don’t have to spend decades trying to get out of credit card debt by yourself. You can get out of credit card debt in 24-36 months while paying a fraction of what you owe.
At CreditAssociates we know that you want to be confident in your financial future. You can have an affordable plan to get out of credit card debt—now! You don’t have to live with the high monthly payments that never end and make you feel overwhelmed. We believe you shouldn’t have to spend the rest of your life paying off credit card debt and we understand the frustration of dealing with it on your own. That’s why we’ve settled over 270,000 accounts for people all across the country just like you.
With our services you can:
- Select your plan.
- Start saving.
- Watch us resolve your debt.
Call us now for a free 5-minute assessment or fill out our form.
Don’t let credit-card debt ruin your life. Live better, debt-free.