North Carolina Debt

The Truth about Debt Consolidation

Despite the success that debt consolidation in North Carolina has shown in clearing consumer debt, there's still a lot of false information being spread around. Whether it's from the media or other debt services, it's important to take their information with a grain of salt. Fortunately, we're here to help you separate the fact from the fiction! Here's a look at some common myths involving debt consolidation and the real truth behind them.

Myth - Debt consolidation hurts your credit score.

Fact - While it's possible that some people may experience lower credit scores for a period of time, debt consolidation is actually capable of improving your score. One of the major factors that credit bureaus use to come up with your score is your total amount of debt. With debt consolidation in North Carolina, you have the opportunity to pay your debt down, which should help your score.

Myth - Debt consolidation will immediately eliminate debt.

Fact - Although debt consolidation is a very effective tool to manage debt and quickly pay it off, it's won't magically make everything disappear. With the help of your consolidation company and a little hard work on your part, you can pay off debt much faster than other methods.

Myth - The only thing debt consolidation does is transfer my balances to a lower rate.

Fact - One of the main steps for some companies may involve transferring your credit card balances to get a lower rate, but it is far from the only one. Most debt consolidators use a variety of techniques and approaches to find the method for paying down debt in your unique circumstances.

Myth - Bankruptcy and debt consolidation work the same.

Fact - This couldn't be further from the truth, as bankruptcy is completely different than consolidation. With bankruptcy, you more or less give up your right to use credit by settling debt with your lenders. Debt consolidation gives you the chance to actually get all of your debt paid off and possibly even improve your standing with lenders.

Myth - All debt consolidation companies are created equally.

Fact - Sadly, some debt consolidators simply don't provide the level of service that others do. There are also completely illegitimate companies out there, often run by hackers or identity thieves. However, by using our service, you can get matched up with one of top consolidators in the industry! Check out our section on "Finding Your Consolidator" for more information!

Myth - Everyone can benefit from consolidation.

Fact - Most people with a significant amount of debt can, and do, benefit from consolidation, but that doesn't mean it's for everyone. Research your finances or talk to a financial analyst to make sure it makes sense for you before applying!

  While it's possible that some people may experience lower credit scores for a period of time, debt consolidation is actually capable of improving your score. With debt consolidation in North Carolina, you have the opportunity to pay your debt down, which should help your score.