Debt relief services are aimed to assist people to cope with the problems that take place in the sphere of expenditures. However, as helpful as these services can be, they are surrounded by many myths and misconceptions which make indecisive and confused those who may have high use for them. Here on this blog, we will demystify some of these myths used in debt relief to ensure that people are making the right choices.

Myth 1: Debt Relief Services Are a Scam

Even though there are con artists in the market, there are legitimate debt relief companies and they are licensed. These are the genuine services that follow some standards, and their practices are clearly described. To be on the safe side you should ensure that your provider has been accredited by such bodies as the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association of America (FCAA).

Myth 2: Debt Relief Will Ruin Your Credit Score Permanently

The taking of a debt relief can in some way affect the credit rating but it is a change that is flexible. In the beginning, your score may reduce because of settlements or negotiations, though, with the passage of time, once you cleared your dues and demonstrated your credit worthiness, your score bounces back.

Myth 3: Debt Relief Is Only for People with Bad Credit

Debt relief does not only apply to the bad Black and Native people. Regardless of the income level, people need debt relief for various reasons including; hospital bills, loss of employment or high interest rates. This implies that you can be having good credit or bad credit, it will be advisable for you to seek debt relief if the debts are proving too much to handle.

Myth 4: You Can Handle Debt Relief on Your Own

Professional debt relief services have a better understanding of how to handle these negotiations. It can generally negotiate more favorable conditions and less payment than that would be possible for an individual legally. Moreover, self-arrangement of debt relief is an art. Anyone who engages in the process has to work so hard to achieve the results while a professional firm will do it on behalf of its clients.

Myth 5: Debt Relief Is the Same as Bankruptcy

Debt relief does not equal bankruptcy. This option entails giving up your property to creditors because you cannot repay your debts entrenched in a legal process that may significantly have transported your credit rating for up to a decade. Debt reduction, on the other hand, is when the burden to pay differing amounts of money is renegotiated by both the debtor and distributor and creditor respectively.

Myth 6: Debt Relief Is a Quick Fix

This indicates that debt relief is something that is not going to happen within the blink of an eye. It takes a lot of effort and some understanding of one another hence it takes time, patience and commitment. Therefore, depending on the volume of the debt and resources of the debtor, it may take several months to a couple of years. Usually, the objective of debt relief is to develop a long-term strategy to avoid such a situation in the future, not just pay off the debts.

Myth 7: Debt Relief Services Charge Exorbitant Fees

To be more precise, trustworthy debt relief services’ fees are legal and must be stated in advance. These fees can be in the form of a percentage of the amount of debt or a proportion of the number of savings done in the settlement. That is why, it is necessary to study the fee structure and related costs before signing the contract for a service. Pricing policy is also among the primary indicators of the service’s reliability when it comes to debt relief.

Myth 8: Debt Relief Will Eliminate All Your Debt

Debt relief does not wipe out your liabilities but caps them, to make payment manageable. Negotiation and settlement lets you cut the amount you have to pay but you will have to make some payment towards the balance of the owed amount. Thus, the purpose of debt relief is to bring the debt levels down and to offer an opportunity to get out of the precarious financial situation.

Wrapping Up!

Debt relief service provider firms are programs that help people who have been tangled in an unmanageable debt situation but there are so many myths about the programs that hold people from searching for help.

Thus, by dispelling these myths, we are describing in detail how debt help works and the possible positive consequences. If you are in a financial crisis, then you might want to seek the assistance of a reliable debt relief company like FCDS to help you.