Friday, September 25, 2020
Home Business 3 Credit Card Debt Settlement Myths Debunked

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

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.





Most Popular

Cooked Carrots Can Trigger Allergic Reactions in Many People: Researchers

The consumption of raw carrots triggers allergic reactions in many people. Contrary to popular belief, cooked carrots can also have this effect, warn researchers. "The...

Covid Patients More Likely to Face Kidney Damage Risk: Study

Researchers have found that many hospitalised patients with Covid-19 may face an increased risk for kidney damage or acute kidney injury (AKI), a dreaded...

Amazon Echo Show 10 to Make Video Calling More Enjoyable

Amazon on Thursday introduced Echo Show 10 that will make video calling more enjoyable as the screen moves as you move, and the camera...

The Emerging OTT Stars

Just a few weeks, ago that filmmaker Shekhar Kapur shared that he was impressed with the amazing new acting talents that the OTT space...

DesignCap – Make a Design and Protect Yourselves from Coronavirus

The new coronavirus was found in one city after another around the world from 2019. During this time, everybody was in a frenzy till...

What To Do If You’ve Been Injured in a Truck Accident

According to FMCSA, 4,311 large trucks and buses were involved in fatal crashes in 2015, an 8-percent increase from the previous year. Each year,...

People Avoid Masks Due to Breathing Problems: Study

When it came to non-compliance towards covering the face, breathing problems have emerged as a key reason, with 50 percent listing it in a...

Women More Vulnerable to Uncurbed Diabetes

Traditionally, women play the role of caregivers in India when it comes to families and their health. They prioritize the health of their loved...

Recent Comments