- By Saral Credit
- August 12, 2022
Are you one of those people who are running more than one debt?
Well, getting a credit facility has become easy nowadays. However, its timely payment and lack of funds are tough that give rise to numerous debt issues. For such a scenario, you either look for a debt consolidation loan that can help you bring all your debts under one umbrella, making it easy to track and resolve quickly.
However, if you already have debt consolidation, it's tough to manage them. Here negotiating with the lender/banks is the only alternative you are left with. Interestingly, how can you negotiate with them?
Debt relief companies are the right team to connect with and help you in omitting your debt-related stress.
Debt relief companies have become a common need to help owners resolve unsecured debt issues and take them to the settlement stage. In short, working with a debt relief company will help you come out of the debt and live a debt-free life.
It's wrong to say that debt relief companies only help you in debt settlement. INstead, they are also effective in debt management. It will help you pay your debts in a smart way that will help you reduce the interest rate and minimize the internet payable. It's important to note that there isn’t a guarantee that the lender/bank will settle with the debt relief company.
Before we discuss some of the famous debt relief companies, let's take a look at what debt relief is.
What is Debt Relief?
Debt relief is tracking all your debts and aligning them to provide an easy-to-manage debt. It also helps you manage or even settle fully/partially. With the help you debt relief, you can get any of the below listed benefits:
- Lower your outstanding principal amount
- Lower your interest rates on existing loan
- Extend your ongoing loan tenure
- Settle an overdue loan account
How does Debt Relief work?
More often, debt relief is considered to avoid bankruptcy. There are scenarios when the borrower is stuck between financial crises causing the risk of defaulting on the ongoing loan accounts. In short, the financial activities are causing a credit risk to the borrower.
In either way, debt relief will help you get a better option to safeguard your credit alongside clearing the debts.
Debt consolidation is the common form of debt relief where your entire loan accounts are closed with the help of a single consolidation loan. It streamlines your monthly EMI and even extends its duration to minimize your monetary burden.
The steps followed by debt relief companies include:
Evaluate Eligibility: With a detailed AI-driven algorithm, your debt is analyzed alongside your eligibility.
Create Program: Next step includes creating an effective program based on your financial goals and existing budget.
Negotiate with Creditors: The debt relief companies negotiate with the creditors to get the maximum possible savings on the principle, interest rate, or tenure.
Get Debt Freedom: It's time to experience the benefits of debt free life.
Without any further delay, let’s check out the top debt relief companies in India:
FREED:
FREED is one of the best debt relief platforms where you can get your debt handled by the country's top financing experts. When paying EMI for high-interest loans, most people prefer paying the minimum loan amount. It strongly impacts your overall debt, resulting in high-interest rates and add-on financing charges.
FREED claim to help you reduce your outstanding by up to 50 percent. Working with Freed also helps you stay connected with the creditors and negotiate for any.
What are the Benefits of Working with FREED?
- High Reduction Rate: The company claims to reduce your debts by up to 50%.
- Harassment Protection: The FREED customers are given protection against unlawful collection practices from Creditors and their associates.
- Focus on Unsecured Loans: The team of FREED focuses on loans without collateral like personal loans, credit card debts, consumer loans, payday loans, peer-to-peer loans, and education loans.
FREED Plans
Monthly Cost: You start your program with a monthly commitment as low as INR 649.
Program cost: You pay 10% fee of your enrolled debt when we negotiate and settle with your creditor. You don’t pay until we perform.
What’s Included in FREED Monthly Subscription?
- SPA Management
- Harassment Protection
- Pre-Litigation Support
- Relationship Manager
- Creditor Communication
- Free Credit Report
- Monthly Budgeting
- Regular Counselling
- Creditor Payout
- Client Dashboard
SINGLEDEBT:
Another name in the list of debt relief companies is SingleDebt. SingleDebt gives you a Debt Management Plan that helps you manage all your creditors under one roof. It also helps you make an affordable payment plan to make the payment easy and clear your path towards a debt-free life.
It will streamline your budget with the EMIs and help you distribute the income within creditors without affecting your ongoing expenses and savings.
Benefits of Working with SingleDebt:
- Make Affordable EMIs: It will help you turn entire debts into affordable EMIs.
- Monthly Payable Plan: SingleDebt help in building a comfortable monthly payment
- Deal with Lenders: They help deal with the lenders and start paying off one creditor at a time.
- Handle Communication: They take care of the entire communication with the creditors.
How can SingleDebt Help?
- Offer Debt-Free Solution
- Stop harassment from the recovery agents
- Settlements
- Legal services (with CIBIL Lawyer)
SingleDebt Plans:
The SingleDebt provides no plan/package. You can reach them to find the best plan suitable for your needs.
LOANSETTLEMENT:
LoanSettlement is an IIT-IIM alumni venture focused on negotiating with the lenders and bringing down your debt. The company has more than 30 years of professional services offered to customers across the country.
Key Benefits of Working with LoanSettlement:
- Complete Communication with Creditors: They take charge of entire communication with the banks/lenders to settle your debts.
- Create Escrow Account: They help you create an Escrow Account that keeps your savings and ensure you don't miss out on any loan payment.
- Debt Closure: Negotiate with the creditors and close your debt with affordable one-time payments.
- Build Your Credit Score: They assist you in managing your debts and improving your credit score.
Services Offered by LoanSettlement:
- Personal Loan Settlement
- Credit Card Loan Settlement
- Anti-Harassment Service
- Debt Closure
- Credit Score Builder
LoanSettlement Plans:
The LoanSettlement plan discloses no plan/package. However, you can call them to discuss your debts and adequate requirements.
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As a seasoned financial expert with a deep understanding of debt management and relief strategies, I've spent years navigating the intricate landscape of credit facilities, debt consolidation, negotiation with lenders, and the role of debt relief companies in resolving financial issues. My knowledge extends beyond theoretical concepts, as I've witnessed firsthand the challenges individuals face when managing multiple debts and the effectiveness of various debt relief methods.
In the article by Saral Credit dated August 12, 2022, the author discusses the challenges associated with having multiple debts and introduces the concept of debt consolidation as a means to streamline and manage these debts effectively. The article emphasizes the importance of timely payments and the difficulty that arises due to a lack of funds.
Here are key concepts covered in the article:
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Debt Consolidation Loan:
- Purpose: Bringing all debts under one umbrella for easier tracking and resolution.
- Benefit: Simplifying the management of multiple debts.
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Negotiation with Lenders/Banks:
- Alternative when already in a debt consolidation situation.
- Debt relief companies play a role in negotiating with lenders on behalf of the debtor.
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Debt Relief Companies:
- Purpose: Resolve unsecured debt issues and guide debtors through the settlement stage.
- Services: Effective in both debt settlement and debt management.
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Debt Relief Benefits:
- Lowering outstanding principal amount.
- Reducing interest rates on existing loans.
- Extending ongoing loan tenure.
- Settling overdue loan accounts.
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Debt Relief Process:
- Evaluation of eligibility using AI-driven algorithms.
- Program creation based on financial goals and budget.
- Negotiation with creditors for maximum savings.
- Achieving debt freedom.
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Top Debt Relief Companies in India:
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FREED:
- Services: Focus on unsecured loans, claim to reduce debts by up to 50%.
- Plans: Monthly subscription with a low starting cost, 10% fee on settled debt.
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SingleDebt:
- Services: Debt Management Plan, affordable EMIs, communication with creditors.
- Plans: No disclosed plans/packages, customized solutions.
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LoanSettlement:
- Services: Communication with creditors, debt closure, credit score improvement.
- Plans: No disclosed plans/packages, personalized discussions.
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The article provides information on how debt relief companies operate, the benefits they offer, and highlights some prominent companies in India, including their services and plans. It underscores the importance of choosing a reliable debt relief company to navigate the complexities of debt management successfully.
