Fact vs Fiction on Debt Relief Options

There are several options when it comes to debt relief in Australia. For this reason, it can be confusing for consumers to choose which the best method to adapt is. One of the best ways to choose is to educate yourself about the basic options available to you. Among the most common ones are debt mediators, debt consolidation, credit counseling, debt settlement and even bankruptcy.
debt mediators
Take time to learn about the common perception about each method to become debt free, as well as the truth behind them:
Credit Counseling
Fiction: All credit counselors are the same.
Fact: Some credit counselors are legitimate, others are not. Do your research before you decide to work with a credit counselor. Just because a company poses to be an expert that does not mean that they actually are. Be especially wary of hidden fees and charges. You would not want to incur more debt than you can handle.
Fiction: All non-profit credit counseling agencies are reputable.
Fact: It is not just the fee that you must look into; you should also consider the quality of credit advice you are getting. Ideally, you want a credit counselor that is reputable, experienced and easy to reach, in case you might have questions regarding your debt situation.
Debt Consolidation
Fiction: Debt consolidation will only make your debt problem worse.
Fact: On the contrary, debt consolidation will make repayments of your debt easier. Since all of your existing loans and debts are rolled into one, you do not have to make multiple payments a month. There are certain downsides to this method, though. One of them is that the repayment period is longer to make the monthly payments lower. But this is a good payoff if you are willing to commit to your monthly payments. Moreover, you have to be responsible enough to meet the payments or it will cause your debt problem to become worse. This could lead to an unending cycle of debt problem.
Debt Mediators
Fiction: Debt mediators will hurt your credit score.
Fact: There are certain risks involved when choosing debt mediators for debt relief for financial hardship. However, this can have huge payoff in the long run as your debt problem is handled by someone who is an expert at dealing with the same situation. This is a great method for those with a substantial amount of debt.
Bankruptcy
Fiction: Bankruptcy is a good alternative when you are out of debt relief options. Read more at Debt Mediators
Fact: If possible, you want to avoid filing for bankruptcy. Look at other credit relief options, especially ones that offer reduced monthly payments. Filing for bankruptcy will have a lasting impact on your credit score – it will stay there for 10 years. It might be easy for you now to get out of debt, but a few years later when you want to buy a house or file for a loan, the consequences could be heavy for you. Try to learn as much as you can before filing for bankruptcy. Or, you could talk to a financial expert about your other options.

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