Debunking Debt Resolution Myths
If you have ever been in debt, you may have considered options like a debt consolidation loan, bankruptcy, or what we do – debt resolution. In stressful economic times, a loan is typically regarded as the first line of defense, and bankruptcy is the last.
Many people don’t realize that debt resolution is another viable option in the middle.
Hard-working Americans are feeling the economic walls closing in these days. Some can get a debt consolidation loan from a bank and pay their credit card with little worry. However, most people who hear debt collectors on the phone daily cannot get approved because of a low FICO score.
Where do those people turn when they have been rejected around every corner for help? Usually, the answer is bankruptcy. Why aren’t they considering debt resolution?
Unfortunately, there is a misperception about the industry because of a lack of exposure to its purpose. That creates a false narrative, which removes a viable and valuable option for millions of people who can’t get a loan but don’t want to file for bankruptcy.
For those struggling with acute financial stress, a ton of debt collector phone calls, and who can’t pay their bills, let’s debunk some five ideas you may have heard about debt resolution.
Bankruptcy is the only solution other than a loan.
Of course, the popular thought about bankruptcy is a “clean slate” theory. Like an Etch-a-Sketch, one call to a bankruptcy lawyer, and your debt record is shaken vigorously and wiped clean.
That is nowhere near the case. While bad credit takes time to rebuild, a bankruptcy stays on your credit report for seven to 10 years. That is much longer than a poor FICO score lasts. For anyone who has ever filed bankruptcy, they can tell you the pressure is just beginning. Consider debt resolution and get this behind you much faster.
All debts can be eliminated through debt resolution.
As much as clients would like this to be accurate, it simply isn’t the case. Debt resolution is an option to eliminate compounding, unsecured debt, which means a loan not backed by collateral (e.g., car, house, property). However, there are unsecured debt types that even debt resolution cannot resolve–student loans, back taxes, child support, or alimony.
Debt resolution doesn’t work.
As one of the largest debt resolution companies in the country and proud of its 4.5- out of 5-star reviews, we will tell you and anyone else that debt resolution works for anyone determined to get through the process and be on the positive side of their finances. As with many American marketplaces, unscrupulous companies can stain or ruin an entire industry’s reputation.
In 2010, the Federal Trade Commission (FTC) amended the Telemarketing Sales Rule to forbid companies from abusing people in need and taking upfront fees. There are organizations that are reputable, honest, and specifically looking to help those being consumed by debt with poor credit. That’s why this option works – thousands of people are in this industry with the single purpose of helping those in need.
Read the reviews. See the affiliations. You can trust them and us at Beyond Finance! Don’t stay in this situation. Make a decision and make those calls stop.
I can’t get out of debt if collectors are already involved.
Unfortunately, many of our clients have said this myth. Debt collectors are just another step in the process. If you return a call from a debt collector, you can try to negotiate a monthly payment plan that could work for you. It doesn’t always happen, but it is possible.
Debt collectors can escalate the problem by garnishing wages or threatening legal action if calling doesn’t work. It’s their responsibility to get paid; many will stop at nothing within the law to get that result. Don’t wait until it’s too late. You do have another option.
I can always call a bank for a loan if I’m in debt.
While banks provide personal consolidation services with a loan, they’re not available for everyone. Banks will check your credit history to give insight into your ability to pay them back. If your FICO score is 640 or lower, odds are they may not give you the money. And if they do, the interest rate will increase significantly, making it more challenging to pay back.
There is another option if you cannot secure a personal loan. Debt resolution has proven itself as millions have graduated from industry-wide programs within three to four years You can do it too.
Debt resolution does work. We have seen clients across the country freed from the burden of financial turmoil. Every situation is different, and not all outcomes are the same. If you are in debt, you deserve to have a customized solution committed to improving your future and giving you the tools to be better after Beyond. The system relieves the stress and removes the debt for everyone who graduates.
It can happen for you too. If you have any other questions, let us know and get closer to your financial liberty today.