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    2 Common Myths About Credit Card Debt Solutions

    Jun 28, 2017

    In the desire to quickly resolve credit card debt, a lot of people have turned to companies that promise appealing and easy answers. However, many of them don’t realize that if something sounds too good to be true, then it probably is. Debt settlement, for example, is a great choice for many people who are burdened with seemingly insurmountable credit card debt. This option definitely offers many benefits, including the possibility of reducing and eliminating debt at a much shorter time. However, some debt relief companies still choose to present the pros of debt settlement in an exaggerated manner. Such an action can mislead people who are deep in debt and give them unrealistic expectations.
    That is why, before choosing a debt relief services company who can help you settle your debts, it’s important to get proper education about credit card debt solutions. Knowing about these 2 credit card debt myths will help you find a trustworthy company and avoid those that offer nothing but talk.   

    Myth #1: I need to pay a debt settlement company upfront so they may negotiate on my behalf. 

    Not true. Under a Federal Trade Commission ruling effective October 2010, debt settlement agencies cannot collect advance fees from its clients before winning a settlement or reducing credit card debt. In fact, any money that may be asked of you by debt relief services in order to pay a negotiated amount needs to be handled by a third-party representative. This means the money you put aside to settle your debt must be secured by an insured financial institution, and that these funds belong only to you and not the debt settlement group. Also, you may choose to cancel debt relief services at any point without penalty, and withdraw your savings at any time. These rules were put in place by the FTC to ensure consumer protection from scams.
    Myth #2: Credit card debt can easily be cut in half as long as you negotiate. 

    Some debt relief agencies can actually reduce your debt by a large percentage, but this is not always the case. A debt settlement company will qualify clients first, checking whether their current finances really cannot accommodate paying off the debt. Debt settlement is often approved for consumers who experience money problems due to unforeseen circumstances, such as job loss or illness. It is not a free pass to get off some of the debt. Creditors want to make sure that they are settling with someone who is legitimately experiencing financial difficulty, not someone who just wants to weasel out of paying.
    Employing the services of a debt relief company is a crucial step in breaking free from the cycle of debt. By knowing these myths, you are one step closer to finding a reliable partner that can supply you with honest answers and help you reach realistic expectations regarding debt settlement.  

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