(Guest Post by Cecillia Barr, a researcher/writer for Debt.org)
When you are looking for help with your credit card debt there can be a lot of misleading advice that might stray you from getting the help you need. Rather than fall victim to some of the crazy misconceptions out there, listen up as we refute three of the more common confusions related back to credit card use.
Credit cards want to keep you in debt: False. Many people think that credit card companies love keeping you down and holding you in oppressive debt. Actually that’s not the truth. The more money you owe on a card, the less money you’ll be willing to spend using that card, right? Credit card companies want you to pay off your debts so you can keep using your cards. Debt settlement is number one on the minds of credit providers so you can bet that they want you to be able to pay your bills and keep current.
The more debt you have, the worse your credit score will be: Again, another common credit card myth is that having more debt will negatively affect your credit score. Yes, with minimal debt and very little credit activity, your credit score will be sufficient but not great. Typically consumers who have more debt also have higher credit scores- given regular payments are being made. Student loans and mortgages can help your score, too, but be careful not to default on either.
Credit cards won’t work with you: If you are feeling overwhelmed by the continual building of credit debt, don’t be afraid to talk to your credit card provider. Having customers who feel powerless is of no use to credit card companies; ideally credit providers want to have confident customers who use their cards wisely to avoid cancellation.
If you have fallen out of favor with your credit provider, the best thing you can do is reach out to them directly and try to work out some kind of an arrangement so that you can get back in their good graces. If that doesn’t work, you can try debt consolidation. This will allow you to combine multiple loans and in addition to reducing the number of bills you have to pay each month, it can lower your monthly payments and reduce the long-term cost of your loans or debts. Being behind in your credit obligations doesn’t do anybody any good. A bill collector only wants to get paid, even if it is not in as fast a manner as possible. So it goes that credit cards will do everything they can to work with their customers.
Don’t continue to believe the myths; do your own research and remember these three common misconceptions. Get help with your credit today!
Cecillia Barr researches and writes about debt-related issues for Debt.org, America’s Debt Help Organization.