Exposed: The truth about debt management myths

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Discussing debts can be very daunting. When a person starts underestimating how important debt management is, it can lead to more problems in the future and keep him from reaching his financial goals. Before things turn for the worse, a person should know what debt management is all about to dispel any assumptions he may have.


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Myth #1: Debt advice is not free. Most people are under the impression that they need to go to a debt management company that charges a fee if they need to ask for advice. This is not true as there are a number of ways to get impartial debt advice free of charge.



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Myth #2: Closing down credit cards can erase debt. In this article, closing down a card reduces your credit history from which credit card companies evaluate your credit score from. The less history you have, debt utilization increases, therefore hurting your credit score. 



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Myth #3: Bailiffs can enter your property and take any item they want. Bailiffs collecting debt cannot force their way into your home. The only time they can do so is when they’ve entered (peacefully) your property before, or when collecting unpaid fines and income tax. Also, they can’t take just anything inside the house. The things they can legally take are the objects the debtor owns, and not those of the debtor’s family. Bailiffs may need to see proof of ownership.


A person’s debt obligation should not be ignored for managing it is vital to his or her financial future. It is best to do research or talk to an expert or professional for debt advice if you do not know what steps to take. 



 Brennan & Clark is a premier full-service commercial collection agency serving the business community since 1980. Follow this Google+ page for more discussion on debt management.