People often hear myths and facts about debt that can change perceptions about this financial issue. Let’s break down the following differences in debt myths and facts!
Speaking of debt, everyone has their own perception. Not infrequently, myths wrapped up in such a way that they seem like facts appear as a powerful solution to overcome debt problem.
Though it’s not uncommon for this debt myth to plunge someone into heavier debt bondage with solutions to address short-term problems causing long-term problems.
People need to know the differences between myths and facts about debt so that they are wiser in resolving each other’s debt problems.
Rows Of Debt Myths And Facts You Need To Know!
Of the many debt myths circulating in society, here are 6 of the most important debt myths and facts you need to understand!
1. Debt is always bad
What comes to your mind when you hear the word debt? Is debt bad? Unfavorable? The first myth about debt is how debt is always labeled negatively
In fact, debt itself consists of two types, namely productive debt and consumer debt. What is the difference?
Productive debt is debt whose value always grows over time. This type of debt will help you make money later and become an investment.
Starting from buying equipment to develop a career, starting a business to increase income, to buying real estate for investment.
This is certainly different from consumer debt which is only used to satisfy desires with no value that can increase in the future.
2. Debt can be paid off with bleaching
The next debt myth is the belief that bleaching is a solution to debt settlement.
Bleaching is often seen as a panacea to free someone from the obligation to pay off their debts.
But unfortunately, this promised effective method never existed. Submitting debt relief is very difficult to do because the borrower’s position is weak in the loan agreement.
Basically, paying off debts to lenders such as banks is the only way someone can be free from debt bondage.
If there are parties promising the debt whitening or debt elimination process outside the bank loan agreement, then this practice can be said to be a form of fraud.
Because the customer actually needs to pay more fees to the person under the guise of the whitening even though the borrower’s debt still exists and hasn’t been canceled at all.
3. Credit Card Insurance = No need to pay off debt
There are many speculations that credit card insurance could be a way out for those who can no longer pay debts and bills.
Before you understand this debt myth, you need to find out whether or not the credit card you have has insurance features and concessions.
The reason is that not all credit cards facilitate their users with insurance. If your credit card has insurance, an insurance premium will be charged to your bill each month.
Not only knowing the availability of credit card insurance, you also need to know the full terms and conditions that apply.
You must pay attention to whether your condition meets the requirements. Usually, new credit card insurance applies if you have an accident that results in loss of life or permanent disability.
If your conditions do not meet these conditions, your obligations as a credit card user are still required to pay debts and bills.
4. Do Minimum payment It can help relieve debt
Minimum payment consists of making payments for your credit card bills by paying on average only 10% of your total monthly bill.
The myth about this debt causes the payment method minimum payment many customers use it to defer debt payments in hopes of debt relief.
While it may seem like a relief, it’s really just about accumulating debt without paying it off. Not to mention that the interest on the account will continue to accumulate so much as to weigh more and more on the weight of the debt.
People often do minimum payment because they are reluctant to have outstanding debts and do not want to deal with them debt collectors but i just want to spend a small amount of money.
Unfortunately this method only gives the illusion of being able to get them out of debt even if the debt burden increases in the future.
5. Moving out of town/overseas can solve your debt problems
Many people who have given up think that moving out of town or abroad will solve their debt problems.
This debt myth that encourages people to run away from their responsibilities may seem like it could temporarily solve the problem. debt collector have the slightest chance of meeting you.
But that doesn’t mean your debt problem will go away. The bank will contact the emergency contact and visit your credit card billing address.
Naturally the closest person to whom you establish your emergency contact will be affected due to your absence as a debtor.
The bank will also insist on tracing your location, especially if the amount billed is not small. This will further burden your emergency contact’s position.
6. There is no way out of overcoming debt bondage
The myth about the latest debt that is said to plague most of your people is that there is no way out of debt bondage.
People who are in debt seem trapped in the perception that there is no way to relieve their debts other than by believing in the myths above.
In fact, there are debt relief programs that you can take part in, such as debt relief in one payment, low-interest installments with an extended duration, or a combination of these two reliefs.
You can obtain these reliefs by consulting the service providers debt management program like the practice.
The practice company can provide the best strategy for paying off debts and help you identify which debts need to be paid first.
Not only that, debt management companies also prioritize good financial management methods so that you can get out of debt immediately.
(Read also: 5 tips to repayi Most effective online loan debt)
amalan international is the first technology-based debt management company in Indonesia to be registered with OJK.
practice works for borrowers and works together to find the best and most affordable solutions with lenders with specially designed debt management programs based on each client’s different needs.
This program is designed so that consumers who are in debt have the ability to regain control of their finances with a combination of consumer education and negotiations with the bank.
In addition to the debt management program, the practice also has a solution refinancing which replaces heavy old debts with new and lighter debts.
Come on, make it happen soon #Hope without debt with practice. Why Friends Practice Is The Solution To Indonesia’s Debt Problems!
This article was published by: Audira Armanitya by title: 6 Myths and Facts About Debt, It’s Not Always Bad!
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