Terms that sound different but are the same. Many financial terms, such as Credit Counselling and debt management programs, sound different but in essence, it's all the same.

1. Credit counselling means helping the customer plan its loan reimbursement, with monthly repayments calculation. Debt management programs are one of the tools for Credit Counselling.
2. Credit Counsellors do not influence your payments. Although some say that they can cut your monthly payments in half, unfortunately, all that a counsellor can do is give advice. The counsellor finds ways of making your debt feel lighter, but he cannot make it smaller.
3. Interest rates are subjective. Many financial institutions advertise lower interest rate on home equity lines. The truth is, you have to have an outstanding reimbursement capability in order to benefit from the A credit list. Most of these lower rates are disguised by other taxes that finally add up.
4. Debt management programs (DMP) payments are not negotiable. Although many agencies boast that they can get you lower payments, truth of the matter is creditors usually have automatic programs to shuffle off up to 95% of their DMP debtors.
5. Debt settlements are not recommendable. If you have introduced such a programme, you should undo it fast. Greenberg says 'If you're going to take this route, you might as well declare bankruptcy'.
6. Debt payments don't need third-party guidance. Many details can be settled between the two people involved: the creditor and the debtor. If you approach the creditor as an individual you might get more from him than acting all-formal and using intermediaries.
7. There is no way of saving money from fees. Even if the lender states it can secure financing with no extra cost, make sure the fees are introduced into the amount you're borrowing and subjected to interest.
8. DMP improves your credit rating. This is useful if you have missed some payments and are turning to a counselor for help. Creditors will applaud your initiative.
9. Bankruptcy is a healthy solution in the end. When all else fails, declaring bankruptcy can be better that going without food and shelter just to pay off debts.
10. Bankruptcy is an extreme solution. You shouldn't declare bankruptcy unless your debt is much higher that your annual income.