5 Debt Myths

in addition to my posts about common mistakes here are debt myths:

"There are hundreds of common debt myths, ranging from debt management myths to debt-consolidation myths and myths about credit card debt.

Here’s a list of five common myths about debt so that you can guard against them:

1. One of the most common debt myths is that bankruptcy is the easiest way to escape of the debt trap and start fresh. The truth, however, is entirely the opposite. Rather than being an easy way out of a debt-ridden life, bankruptcy is probably one of the most troublesome phases in anyone's life. It can have a long-lasting impact on everything related to your life, including your future income potential and credit needs. These things, in turn, can put you into another debt trap.

2. Another debt myth is that bankruptcy will ruin your life and should not be considered under any circumstances. This myth about debt says just the opposite of the first debt myth mentioned above. While bankruptcy is certainly not a good option, it can be the only option in certain cases. If you have consulted a good credit counselor and have been told that bankruptcy is the only alternative, you should choose this option. After all, going bankrupt could still be better than having nothing financially to support you."

read more here: http://www.newsmax.com/FastFeatures/Debt-management-myths-common/2010/12...

Great article Luke4hope, thanks so much for the important information, most especially in this economic condition.

I agree luke, great read.

glad it helps, good basic info for anyone with money problems.