You may think you know about debt relief programs but as in his presentation reveals, there are a lot of myths associated with it so that some of the things you think you know may not be true at all.

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10 Myths About Debt
Relief Programs You
Need To Correct
Are you stressed out and drowning in
debt? If you are, then you should know
that debt relief is the secret to a happier life.
Debt relief programs will help you create a
structured plan that will get you out of the
debt situation that you are wallowing in.
The question is what program will you
choose? (Continued)
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2. Helpful Financial Information from National Debt Relief …
While the main challenge is in the journey, you can set yourself up to succeed or fail
through the plan that you will use to get yourself out of debt. Some people think
that they can pick just any program from a list. That is not true. You need to
make your choice carefully. You have to understand each and every one of your
options so you can see which of them will suit your specific needs best.
10 myths that consumers have about debt solutions
The debt relief programs you can choose from include debt consolidation loans,
credit counseling, debt management, debt settlement and bankruptcy. All of
these can get you out of debt. However, they follow different processes. Instead of
defining them one by one (which you can do by browsing through our pages here
at National Debt Relief), we will give you 10 myths that commonly confuse people
about them.
Myth 1: Credit counseling and debt management are the same.
Simply put, debt management is just a part of credit counseling. While these can
mean two different processes, credit counseling is the more important one. You
can get credit counseling without debt management, but you cannot do the latter
without going through the former. Credit counseling involves a credit counselor
that will help you create a structured plan to solve your debt problem. Debt
management is one of the processes that can be used to actively take part in your
debt payments.
Myth 2: Debt management can lower your debt amount.
Some people think that debt management can lower their overall debt amount
when in truth it does not. What this program does is create a debt management
plan that will stretch your current balances over a longer payment period. This
results in a lower monthly contribution. But if you total the amount that you have
to pay, it is still the same.
Myth 3: Debt consolidation loan saves you money on interest.
Debt consolidation loan combines your debts into one new loan. Getting a low
interest loan that can be used to pay off your multiple high interest debts does
this. While you will aim for a low interest loan, you have to understand that you
will be stretching your debts over a longer payment period. If you compute the
low interest amount over a longer period, that can end up being more costly than

3. Helpful Financial Information from National Debt Relief …
if you were to stay with your current high interest rate. The longer your payment
plan, the more you will pay in interest.
Myth 4: Debt consolidation loan cannot be done without collateral.
As mentioned the aim of debt consolidation loan, just like all the other debt relief
programs, is a low interest rate. If you get a loan to pay off your debts, a secured
loan that requires a collateral will yield the lowest interest rate. But that does not
mean this is your only option. You can use debt consolidation loan even if you do
not have anything to use as collateral. For example you could get a personal
(unsecured) loan but you will need a good credit score to get a low interest on
that loan.
Myth 5: Professionals will give you better results.
This actually depends on you. Debt professionals are trained experts but this does
not mean you cannot accomplish what they can do. Some people have actually
gotten out of debt through their own efforts. But if you know that you cannot do it
on your own, then hire a professional. You just have to be careful about who you
will trust with your debt problem. FTC.gov, the website of the Federal Trade
Commission, reveals that the most reputable of the credit counselors usually
come from non-profit organizations. They can offer their services through phone,
online or personal meetings.
Myth 6: Debt consolidation and debt settlement are the same.
Another myth about debt relief programs involves the confusion between debt
consolidation and debt settlement. These are two different programs. The first
involves combining your debts under one easy payment plan. The other, debt
settlement, is mostly about debt reduction.
Myth 7: Debt settlement is the fastest way out of debt.
This actually, may or may not be true. Debt settlement involves negotiating with
your creditors to allow you to pay off only a portion of your debts because you are
in a financial crisis. If they agree immediately and you have the money to pay the
debt in lump sum, then you will get out of debt faster than you think. But if they
drag it out because they do not want to agree to your settlement proposal, it will
take longer to become debt free.

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Myth 8: Debt settlement is always better than bankruptcy.
A lot of financial experts will tell you to choose debt settlement in order to avoid
bankruptcy. Both of these options will give you debt freedom but at the cost of
your credit score. Between the two, bankruptcy will do the most damage to your
credit report. But even given this there are cases when your financial situation is
better off with bankruptcy. Debt settlement will still require you to pay a portion
of your debts. If you are really hard up financially and you have no income,
bankruptcy might be your best option.
Myth 9: Bankruptcy will save you from paying back your debts.
Here is another misconception about the bankruptcy procedures. People often
think that if you are proven to be financially incapable of paying your debts, you
won’t have to pay anything. While you will not have to pay your dues in full, there
is still some form of payment involved. If you choose a Chapter 7 bankruptcy,
your assets will be liquidated and used to pay off your debt. In a Chapter 13
bankruptcy, you will have a court-approved repayment plan that will require
monthly payments.
Myth 10: Bankruptcy can ruin your future.
This is the myth that gives bankruptcy a notorious reputation in the financial
industry. While there will be damages to your life and financial records, it is not
the end of the world. In fact, some people consider this as starting with a clean
slate -- a broken slate but a clean one nevertheless. Bankruptcy does not mean
you will be tainted for life. This record will only stay with you for the next 10
years. In fact, you could find yourself able to get a loan in a few years time - at
least if you take care of your credit during this time.
How to choose the right program for debt relief
Now that we have cleared up these myths, let us help you make the right choice.
Debt relief programs are effective but you have to choose the right one. Here are
4 important questions that you have to ask yourself.
• What type of debts do you have? The first question that you need to ask
yourself involves the type of debts that you owe. According to
the NewYorkFed.org, the top debts by the end of 2013 include mortgages
($8.58 trillion), student loans ($1.08 trillion), auto loans ($0.86 trillion)
and credit cards ($68 trillion). The debt relief programs discussed in this

5. Helpful Financial Information from National Debt Relief …
article can usually resolve credit card debts. However, the other three are
not the same. For instance, in bankruptcy, student loans cannot usually be
eliminated. Debt consolidation loan can typically help with all of these
credit accounts. Understand the type of debts that you owe so you will
know the right program for your financial needs.
• How much can you afford to pay every month? Start by using a budget
plan before you choose a debt solution. If you can afford to pay the whole
debt, you could opt for debt consolidation. If your income is lower than
before, you need debt reduction and that involves debt settlement or
bankruptcy.
• Do you have a steady income coming in and can you grow it? If you can
increase your income, at least until you have paid off your debts, you may
not have to opt for debt settlement or bankruptcy. That way, your credit
score would remain intact when you achieve debt freedom. But if you
know that your financial situation will not improve soon then it may be
best to consider debt reduction.
• What are you willing to sacrifice to gain debt freedom? Lastly, you may
want to ask yourself what you are willing to give up to achieve debt
freedom. It can be your credit score or your time. If you don’t mind having
your score lowered, then opt for debt settlement or bankruptcy. If you
don’t mind sacrificing your time, just work longer hours or get a second
job and choose debt consolidation.

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Does this sound familiar?
• You are tired of worrying about money…
• You are losing sleep due to mounting credit card
debt…
• You are fighting with your partner about the
bills…
• You are living paycheck to paycheck…
• You are falling behind on your debts…
• You are losing hope…
•
It’s time to talk with National Debt Relief!
Call Toll Free 1-888-703-4948 Now!
Or Go To http://NationalDebtRelief.com