debt-consolidation

If you are about to secure any kind of debt in the near future for any purpose, you might as well have started researching thoroughly on the background of the lenders, the prevalent rates of interest existing in the market as well as other factors. However, most of the potential borrowers out there are clouded by a series of myths surrounding debts. And, what exactly are these myths? You are not exactly required to go through complicated journals preaching to you about Real Estate Delhi or World Economy to educate yourselves about these myths. Just following a few simply informative blogs or articles will actually help you considerably in this regard.

Debt: A few myths

The offer appearing on the first page of Google is the best offer

No! Absolutely not! There is no guarantee that the offer advertised on top of the Google page is necessarily the “best” when it comes to your budget and needs. Those appearing first on Google are not necessarily the cheapest. Make sure you are investing proper time in conducting market survey. Compare the rates offered by different lenders.

Repaying your old loans always bolsters your credit scores

In reality, if a debt is too old then there is no chance of your credit scores improving. A debt as old as seven years might stay on your credit report. And, if you are repaying that then you would stand eligible for better credit scores. However, if your debt is more than 7 years old then repaying the same will not really be beneficial when it comes to bolstering credit scores. If a debt is more than 7 years then it should legally come off your credit report.

Collectors have the right to harass you if you default

As much as it is your responsibility to pay off debts on time, please be duly informed about the fact that your collectors cannot harass you even if you fail to do so. Yes, they have the right to call you and put their opinions forward in a decent manner. They cannot really call and abuse you. They cannot call you any time they like. The Federal law restricts the hours within which they call. Many borrowers believe that collectors can call them at their work. However, they are restricted to do so legally if you have asked them not to call. If the collector calls you at the middle of the night or at dawn, then you can jolly well approach the Federal Law as a violation of the same.

Plus, the collectors have absolutely no right to call your friends and relatives so that they can pull you in to paying your debts off. They may call your loved ones but if they mention your details regarding your debt to them then they are actually violating the Federal law by revealing confidential information.

Conclusion

Acquainting yourself about these myths is also a way of bolstering your financial knowhow. Be on your strongest guard against these practices. Stay informed. Stay ahead.

We can only hope that the tips mentioned above have turned out to be of immense help for you.