There are many rumors associated both with debt management, debt consolidation and bankruptcy. Here are some of them:

Debt management is a scam:This is not true. Debt management can help you get your monthly payments under control, and may even lower your total debt by a certain amount. Yes, there are many scammers on the internet, and yes, you may have to search a bit before you find the right company, but it is possible to get a good debt managementplan that can help you lower your debts.

Debt management is better than debt consolidation or vice versa:This is not true. If you are having problems achieving that monthly payment for your loans, it is probably a good idea to go for debt management. If the monthly payment exceeds your income, than it is probably a good idea to approach a debt consolidation company. Debt consolidation is also good if you feel that your creditor is charging an exorbitant rate.

Bankruptcy can solve all my problems: False; Bankruptcy can lead to a lot of problems, like bad credit rating, bad interest rates on mortgage, bad interest rates on car insurance, unemployment etc. However, it does wipe your slate clean, taking you away from any other debts and liabilities.

Debt managementplanscan make your unsecured debts disappear or bring down your debts by 70%: This is not true. While debt managementplans can certainly help in the direction of lowering monthly payments slightly, they can never offer a quick getaway. There is no shortcut to debt repayment.

Consolidated loans are easily available:This is not true. Many companies have to be convinced about your reputation and good credit rating before a consolidation loan is given. Even then, it involves a lot of paperwork and negotiations before you can get a good deal from any creditor.