7 MOST COMMON MYTHS OF DEBT

Dear Ambitious Women and Visionary Business Owners,

In the world of credit and debt management, misinformation can not only steer you off your path but can also keep you from harnessing your full financial potential. Today, I’m here to challenge the myths that may be holding you back from achieving true financial freedom.

Many believe that carrying a balance on your credit cards can help improve your credit score.

This myth persists because it seems logical—regularly using and paying off credit shows activity and responsibility.

Consider Rena, a budding entrepreneur who maintained a balance under this assumption, paying more in interest without any real benefit to her credit score.

Instead, of maintaining a low balance or paying off your credit cards in full each month, you can boost your score more effectively, showing lenders your adeptness at managing and repaying debt.

Myth #1: Carrying a balance on your credit card boosts your credit score.

• Reality: Paying off your balance each month can improve your credit score more significantly than carrying a balance ever would.

Myth #2: All debt is bad debt.

• Reality: Strategic debts, like those for education or a mortgage, are investments in your future that can generate long-term wealth.

Myth #3: You should prioritize paying off debt before saving.

• Reality: Balancing debt repayment with savings can provide a financial buffer, reducing the need for further debt in emergencies.

Myth #4: Debt consolidation always saves money.

• Reality: It can lower monthly payments but might extend payment terms and increase the total interest paid.

Myth #5: Checking your credit score lowers it.

• Reality: A "soft inquiry" for checking your score has no impact, unlike "hard inquiries" from lenders.

Myth #6: You can ignore old debts.

• Reality: Old debts can still impact your credit score and can result in legal actions if ignored.

Myth #7: Bankruptcy wipes out all your debt problems.

• Reality: While bankruptcy can relieve many debts, it comes with significant long-term credit implications and does not clear all types of debt.

Let's Break Free Together

I understand that the journey through personal and business finance can seem daunting. But equipped with the right knowledge, you are unstoppable. If any of these myths have made you pause and think, or if you recognize their echoes in your financial strategies, let's realign your approach towards one that truly serves your aspirations.

Take Action Today

Don't let myths cloud your financial future. Download my free e-book, "Convert Debt to Wealth," and/or schedule a personal consultation to dive deeper into how you can build a stronger, more resilient financial portfolio. Your path to financial clarity and empowerment is just one click away!

Download the Free e-book | Schedule a Consultation

Together, let's turn your financial goals into achievements.

Warm regards,

Troy Holt, CEFI

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