The Debt Test

When it comes to paying off a mountain of debt, it seems like just about everyone thinks they're an expert. The truth is, there's a lot of myths and false information being spread around by people today. If you think you already know everything there is to know about debt consolidation, then see if you can tell which of these statements are true and which are false in our Debt Test!

Statement: Declaring bankruptcy and consolidating debt are basically the same thing.

- False -

There are actually many important differences between bankruptcy and debt consolidation. As most financial experts would tell you, declaring bankruptcy can negatively impact your life for many years. It all but ruins your credit score, meaning you'll be unable to open up new credit cards or take out loans for quite a while. With debt consolidation, you get the opportunity to pay your debt off and possibly even improve your credit score.

Statement: Debt consolidation is a quick fix and will eliminate debt immediately.

- False -

Despite what you may have heard from other people or advertising companies, debt consolidation is not a magical solution to ending your debt problem. While it is an excellent method to pay debt off, it requires patience and discipline in order to be successful. It won't happen overnight if you have a mountain of debt, but using debt consolidation will help you pay off your debt.

Statement: Debt consolidation can help improve your credit score.

- True -

Although there are no guarantees involving credit scores, debt consolidation generally improves your credit. That's because one of the main factors in determining your credit score is your total amount of debt. With debt consolidation, you'll be able to pay down your total debt, which should then help improve your credit score.

Statement: All debt consolidation programs are scams.

- False -

While there are certainly some people out there who don't have your best interests in mind, the majority of debt consolidation programs are not a scam. In fact, there are many companies that work non-profit or only charge a small fee. We have a network full of legitimate and experienced debt consolidators, so take advantage of our free matching service if you're still worried about getting scammed.

If you did well on this, but still have questions, see if they are answered in our frequently asked questions.