According to studies conducted by the Federal Reserve, the average American has a credit debt exceeding $15,000, a mortgage exceeding $150,000 and student loans that top out around $32,000. In total, Americans owe over $11 trillion dollars to creditors. This is a lot of money and it has led many people into considerable financial straits.
As a result of the increasing debt burden faced by American households, many people are turning to debt counseling to regain control of their finances. Unfortunately, there are several myths and rumors that are preventing even more people from doing so. The time has come to dispel the following common financial myths so that you can regain your financial independence.
- “It costs too much.” Most counseling is free or available at low costs. NFCC members are prohibited from denying service if a client is unable to pay.
- “It’s embarrassing.” So is going to the doctor, but that doesn’t make the problem go away. While it may be embarrassing to discuss your situation, counselors are certified and trained to help you get past this problem and help resolve it in a proactive manner.
- “It’s only advice, with no real solutions.” A component of debt counseling is education and advice. However, this advice is designed to help you manage your debt management plan. Thus, any advice you receive is aimed at helping you take full advantage of the financial management tools that are set up for you.
- “Debt counseling will ruin my credit score.” Debt counseling is not reported to credit bureaus, therefore, it won’t damage your credit score. Conversely, not making payments or having debts go into collections absolutely will ruin your credit and make it harder to obtain home and car loans.
- “Debt settlement or even bankruptcy are better options.” These are serious financial decisions that will impact your credit and financial status for many years to come. Debt counseling takes place before either of these options. It’s a wiser option to work with an accredited credit counselor before taking these steps. In fact, the goal of counseling is to avert bankruptcy.
Be sure to contact Superior Debt Relief Services before you begin any debt counseling program. We’ll be happy to answer your questions and to explain in detail the options available to you and your specific debt reduction needs.
Image Source: freedigitalphotos