In A Debt Crisis?


stay away if you’re not serious, Pratt suggests. What’s more, Smith, who says his two-year-old credit repair company has a 98% success rate, asserts that living within, not beyond, one’s means is the key to eliminating debt and restoring credit. “If you’re struggling, surviving off credit will not help; that road is a dead end.”

Debt Consolidation Myths
Myth #1 Debt consolidation loans save you money
Truth: Many of these programs offer you financing with no out-of-pocket fees. What they don’t reveal is that they roll the fees into your loan, which is then subject to interest rates.

Myth #2 Debt settlement and debt management are the same
Truth: Debt settlement programs hold your monthly fees until the creditors stop sending notices and agree to negotiate a reduced lump-sum payment. Debt management is having a clear picture of your finances and then creating a plan to deal with debt.

Myth #3 Dealing with an agency is the only way to get out of debt
Truth: You might benefit more from applying for a home equity line, refinancing your mortgage, approaching the credit companies yourself, or seeking credit counseling.


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