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3 Credit Card Debt Settlement Myths Debunked

Here are a few credit card debt settlement myths that you need to know and the truth behind it

One of the primary sources of debts by people all over the world is credit card debts. Pixabay

Being debt-free is one of the most common goals of every adult today. Everyone wants to settle all their financial obligations as soon as possible, so they no longer have to think about it all the time. Once you begin to be debt-free, you can start saving up for more important things in life, like your own house or your retirement funds. One of the primary sources of debts by people all over the world is credit card debts. Paying its monthly interest can cost you a lot of money.

For this reason, most people choose to believe several myths about paying off their debts using the easiest way possible. But debt settlement can get complicated if you believe all the wrong information. Here are a few credit card debt settlement myths that you need to know and the truth behind it.

Myth #1: You Can Always Reduce Your Credit Card Balance In Half For Any Reason

Truth: The credible debt settlement companies talk to their clients to determine if they qualify for a payment resolution program. They would want to hear about your difficulties that cause you to have a significant financial problem.

Some of the hardships that most people go through include job loss or pay reduction. They may also suffer from different personal issues like divorce or medical problems. Some people, on the other hand, cannot handle their debts and eventually see it spiraling out of control.

If you have proof about your difficulties, your debt settlement application will pass the requirements of the lenders. But if you still earn a lot of money but even consider cutting down on your credit card dues, the lenders will not approve your application.

Myth #2: When Settlement Negotiations Are Over, You Will Be Out Of Debt

Truth: Debt settlement companies can only help you deal with certain types of debts like credit cards, medical bills, and other unsecured debts. However, they cannot help you with other collateralized debts like federal student loans, mortgages, and other obligations under federal credit unions. These types of debts are not under the debt settlement program. It means that debt settlement is not enough to help you eradicate all your debts. The banks may still hold you accountable for your other obligations.

Credit Card, Payment, Credit, Card, Money, Business
Most people choose to believe several myths about paying off their debts using cards in the easiest way possible. Pixabay

Myth #3: The Debt Will Haunt You Forever If You Do Not Settle

Truth: The US practices a statute of limitations when collecting a debt. It means that most debt collectors can only run after you for a specific period. In most states, the statutes of limitation have a three-to-six year time frame. If you did not make any payment on a particular account for three to six years, then the court will no longer accept the debt. But some jurisdictions may extend this period based on their state laws. You need to check with your state to know their rules about the statute of limitations.

ALSO READ: Tech Giant Apple Increases The Price of iPhones in India After Import Duty Hike

Paying off all your debts can put a massive dent in your pocket, especially if you let the interest pile up over time. But with the help of debt settlement services, you can manage to deal with your financial obligations using the simplest and most feasible ways possible. They can advise you on the amount of money that you need to shell out to pay for your credits and how to complete the payments in the fastest ways possible. So talk to a trusted debt settlement expert to help you reach your goal of being debt-free in the nearest future.



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India’s Lockdown Disrupts Functioning of Amazon and Flipkart

Amazon India Delivery and functioning of Essential Goods via. E-commerce companies Disrupted

Virus Outbreak Amazon
India's coronavirus lockdown is disrupting e-commerce companies including Amazon and Flipkart. Pixabay

India’s coronavirus lockdown is disrupting e-commerce companies including Amazon and Flipkart, despite government assurances it would not, four sources familiar with the matter told Reuters.

Differing state and district level regulations relating to the 21-day lockdown, which began on Wednesday, are hindering operations, the sources said on Friday, with e-commerce firms finding it difficult to get curfew passes for delivery staff.

The disruptions highlight the difficulties of ensuring the supply of essential goods to 1.3 billion people during the shutdown in India, which has so far reported 724 cases of coronavirus and 17 deaths. Most of Amazon’s 60 plus fulfillment centers in India are shut and the U.S. company is in talks with state authorities to try to reopen them, three of the sources said. Industry executives say local authorities have not followed guidelines, stopping deliveries and warehouses from operating.

Virus Outbreak Amazon
A sign is lit on the facade of an Amazon fulfillment center. VOA

“It’s worse than one can think,” one source said, while a second added that only a “miniscule” number of Amazon warehouses were operating, citing this as a key reason for disruptions. Even when operations do begin to return to normal, it will only be in major cities, the second source added.

Amazon said in a statement that its top priority was to deliver the products which customers need the most and it was seeking urgent help from federal government and local authorities with detailed on-the-ground operating procedures. In New Delhi, Amazon’s Pantry service was suspended and the delivery slot for essential goods, such as oil and soaps, was shown as being April 26.

“There are clear guidelines provided by Government to enable essential services, and so we are working with the relevant authorities to ensure we are able to operate,” Amazon said on Twitter in response to questions from users in India.

Indian trade minister Piyush Goyal held a meeting with e-commerce executives on Thursday and said the government was “committed to ensuring that essential goods reach the people.”

Also Read- Effects of Quarantine on Mental Health and Relationships

Walmart-owned Flipkart has also been hit, with some grocery items which had been available earlier on Friday in New Delhi intermittently going out of stock. A source familiar with the situation said Flipkart was facing challenges with last-mile delivery of goods once they leave its warehouse due to restrictions on movement.

Flipkart said in a statement it had resumed grocery operations and there was a significant spike in orders. “We are enhancing capacity to meet the increase in customer requirements,” it said, adding it had received support from local and federal authorities.  (VOA)