Credit Myths: Compliments of www.stretcher.com

Myth #1:  I'm a complete financial loser for getting myself into this mess.

Fact:  It may be true that you're responsible for getting into debt, but that doesn't make you a loser.
In fact, it may not be your fault at all. As long as you start working on becoming more knowledgeable when it comes to finances, you will ultimately find success in controlling your debt.

Myth #2:  Credit is what got me into this mess.

Fact: Spending is what got you into this mess(debt). Credit was the means to spend. If your problem is spending, then you very well may have spent all your cash. However, credit cards may make it easier to spend.

Myth #3: There's nothing I can do about it now. My credit is destroyed forever!

Fact: As long as you work, starting today, to rebuild your credit, you'll eventually get it under control. Rebuilding your credit means: (1) paying on time; (2) Looking for better credit options; and (3) Learning more about money and credit.

Myth #4: If I cosign a loan for my friend, it has no effect on my credit.

Fact: When you cosign a loan, it's like you took the loan on your own! It may be true that your friend is the first one responsible for the loan. However, if they default, it's completely your problem.

Myth #5: It's fine to give out my credit card number for identification as long as I don't authorize a charge.

Fact: Never give out your information as a form of identification. When it comes to giving out any personal information, be sure you know exactly with whom you're speaking. This is especially true with someone on the phone.

Myth #6: If I pay off an old debt, it will be removed from my credit report.

Fact: Most likely, no. In fact, when you pay past-due debts, it restarts the time period that it can be reported in your credit history!

Myth #7 When I get divorced, my "X" will owe half the debts.

Fact: If your name is on the account, then you owe the money! If you have a  joint account and your ex-spouse refuses to pay, even if you've agreed they would, then you're next on the collection list.

Myth #8: The government owns the credit bureaus.

Fact: Credit reporting agencies are not owned by the government. Although, there are many laws that dictate how they must operate.

Myth #9: I cannot change the information on my credit report. It's set in stone.

Fact: You can change the information! The Fair Credit Reporting Act outlines that information that's not 100% accurate or cannot be verified within 30 days, must be removed.

Myth #10: If I get in debt too deep, I can just file for bankruptcy protection.

Fact: The bankruptcy laws are changing to make it more difficult to eliminate all your debt in a bankruptcy, so you may end up paying much of it back anyway. It will also be on your credit report for 10 years! Hey, if you have no other options, then you should certainly investigate bankruptcy. However, it's much better to settle the debt if you can.

For other money saving ideas visit the www.stretcher.com website.

WWW.Stretcher.com is an American website therefore the information provided in the article above reflect U.S. laws. The Canadian laws are sometimes different than the U.S. laws.

When a person files for bankruptcy in Canada they're in a state of Bankruptcy for nine months until the Bankruptcy is discharged. The bankruptcy then remains on the individual's credit report for six years once the bankruptcy has been discharged. For more information on Bankruptcy and the Canadian laws please visit: 

In Canada credit reporting agencies must adhere to the rules and regulations set out for them by the Collections Agencies Act. 

If you feel you have not been treated fairly by a collector, collection agency or a collection agent you can contact the Ministry of  Government Services at: http://www.mgs.gov.on.ca/  or call:

Toll Free: 1. 800.889.9768 or 1.416.326.8800 for Consumer Information and Advice
Toll Free: 1.800.268.7095  or 1.416.325.3408  TTY / Teletypewriter users only

Visit http://consumerinformation.ca there is a link to a complaint courier where you can actually file your complaint against a creditor or collection agent online.