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The Biggest Lies About Getting Out of Debt That Keep You From Getting Rich

Debt has a way of casting a dark cloud over you. It seems to follow you everywhere and remind you that you’re chained to it until you make the very last payment. As soon as you think you’re close to digging out, interest payments sneak up on you and pull you back down into the debt pit. It can send you into a never-ending cycle of despair.

If you’re managing a significant amount of debt, you’ve probably been talking to friends and family about it in hopes of getting some advice. Unfortunately, there’s a lot of misinformation out there that can lead you to even bigger financial problems. Here are some lies about getting out of debt that keep you from being rich. Have you believed any of these?

Credit counseling hurts your credit score

Young couple with financial adviser

Young couple with financial adviser Credit counseling can help you get on the right track with your finances. | iStock.com/megaflopp

If you hit a rough patch with your credit cards, you might be thinking about talking to a certified credit counselor. However, you might be nervous to proceed because you’re afraid of how your credit score will be impacted. Contrary to popular belief, credit counseling will not hurt your credit score.

Simply talking to a credit counselor and getting advice about your financial situation does not cause your score to drop or result in a black mark on your credit report. And if the credit counselor enrolls you in a debt-management plan, this does not usually affect your score or report.

Next: Factors that can affect your score

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