Debt relief is perhaps one of the most misunderstood areas of money.
People have all kinds of beliefs about ways to relieve their debt that are just plain wrong and can actually cause you more financial problems.
Three such beliefs are that paying off debts with credit cards is an effective strategy, that debt relief loans are easy to get on your own and that you can't get out of debt without collateral.
Read on to learn the truth about each of these three myths.
Myth #1 - Paying Off Debts with Credit Cards is an Effective Strategy In reality, every time you choose to pay off a credit card with another credit card, you're making your financial situation worst.
You're paying interest multiple times on the same amount of money.
If card A charges you 9% and card B charges you 12%, you're paying 9% to card A, then 12% to card B when you use the money to pay off card A.
A lot of people perpetuate these chains for many, many credit cards.
This is a disaster waiting to happen! Myth #2 - Debt Relief Loans Are Easy to Get On Your Own Most people who try to get out of financial distress on their own ultimately fail.
There are many pitfalls that the uninformed person simply doesn't know how to look out for.
Furthermore, negotiating with the various different lenders can be a very lengthy and stressful process.
Again, for the lay person it's a lot to handle.
Instead, most people find that working with a reputable debt settlement company really pays off in the long run.
Myth #3 - You Can't Get Out Of Debt Without Collateral Contrary to popular belief, you don't need collateral to get debt relief.
You can relieve your debt without collateral, especially if your lenders believe in good faith that you want to pay off your loans.
Again, it's in your lender's best interests to help you with your financial problems.