We cannot deny it, really. We are living in a society where debt is accepted and tolerated. While we all know that debt is not always a good thing, and that we should never get mired in the mud of bad debt, there are still many circumstances that come into play. And sometimes, before we know it, we are faced with debt problems that seem insurmountable. But before you jump into that water of debt solution, debt consolidation, or whatnot, here are some things that you have to consider. Some of the solutions being offered today may not be the best option for you. In fact, there are many myths surrounding solving debt, and you have to know about these!

More so, there are many other financial problems that we face, and every day, we might have to make decisions that will make an impact on our finances. Make sure you know how to separate the myths from the facts and make wise decisions!

Myth#1: An IVA is your best bet to get rid of debt.
I am sure that you know what an IVA is. Just to make sure, though, IVA is short for Individual Voluntary Arrangement. It simply is an agreement that you come up with your creditors. This can freeze you debt so that interest will not accrue, while you pay fixed amounts for a certain period of time. While it does work, it is not always the best option. This is because it will depend on your creditors as to how much you will pay each month. If they decide on a huge amount, you might very well be in a worse situation than when you started. More so, later on down the road, you might encounter problems with an IVA in your record, as many lenders see this in the same light as they do bankruptcy. So before you decide to get an IVA, make sure that you have no other alternatives open to dealing with your debt.

Myth #2: It will be easy to get another job, no one wants one!
Well, maybe many years ago, this statement might have been true. But with the economic climate getting worse, many people are clinging to their jobs. Even more are trying to find jobs that will keep them afloat. If you are sick of your job and you want to quit, make sure that you have already bagged another one. There simply is no certainty that you will be able to find another one in the near future.

Myth #3: I have a degree, I’ll get a nice paying job than those who do not.
As nice as that sounds, it simply is not true! In many cases, skill and experience will count more than a degree. While having a degree means that you can qualify for certain jobs and positions, it does not guarantee higher pay. Better face up to that reality or else you might be jerked back to earth excruciatingly.

These myths might not sit well with you but you do have to consider the truth in them.

This entry was posted on Tuesday, April 7th, 2009 at 8:22 am and is filed under Personal Finance, Advice . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.