A Clear Path to Debt Freedom: How to Get Out of Debt Faster

Debt doesn't happen overnight. It builds up slowly-and it can happen to anyone.

A medical emergency. A job loss. A business that didn't work out. Or simply not knowing how to manage money when loans started piling up.

A survey by Saral Credit found that around 67% of Indians have taken a personal loan at some point. And nearly 1 in 3 of those borrowers has struggled to repay. That's not a small number-that's millions of families.

The reasons are usually the same:

The good news: no matter how deep the debt, there is always a path out. Let's build that path together.

This sounds obvious. But it's the step most people skip.

When you're short on cash, taking a new loan feels like a solution. It's not. It just adds another EMI to your already tight budget.

Every new loan makes the hole deeper. The interest keeps growing. And the stress keeps building.

Make one firm decision right now-no new loans, no new credit cards, no borrowing from apps. Not until your current debt is under control.

This one decision changes everything.

Most people have no idea where their salary disappears every month. By the 20th, it's already gone.

Write down every single expense for one full month. Every meal, every recharge, every subscription, every cash withdrawal. Everything.

You will be surprised. Most people find ₹2,000–₹5,000 every month that was going to things they didn't even notice.

You can use a notebook, a phone notes app, or a free budgeting app. The tool doesn't matter. The habit does.

Once you know where money is going, you can decide where to stop it.

Once you know where the money goes, make a simple budget. Every month. Before the month starts.

A basic budget has three parts:

Fixed expenses-Rent, EMIs, school fees. These are non-negotiable.

Variable expenses-Groceries, travel, utilities. These can be reduced.

Debt repayment + savings-Whatever is left should go here first, not last.

A simple rule that works: 50-30-20

• 50% of income → needs (rent, food, EMIs)

• 30% of income → wants (eating out, shopping)

• 20% of income → debt repayment and savings

If your EMIs alone are eating more than 50%, that's the problem to solve first. Talk to your lender or speak to FREED.

This is the step most people avoid. They ignore calls, avoid emails, hope the problem disappears.

It doesn't. It only gets worse.

Banks and lenders have hardship options. But they only offer them if you ask-and if you ask before it's too late.

When you call your bank, explain your situation honestly. Ask about:

• EMI restructuring-Extend the loan tenure, reduce monthly payment

• Moratorium-A temporary pause on payments (available in some cases)

• Interest waiver-A reduction on penalty interest

• One-time settlement-Pay a lower amount to close the account

The bank would rather negotiate than deal with a default. Use that to your advantage.

If you have multiple debts-credit card, personal loan, home loan-you need a strategy. Two methods work best:

The Avalanche Method-Pay off highest interest first

List all debts from highest to lowest interest rate. Put all extra money towards the highest interest debt. Pay minimum on the rest.

This saves the most money over time. Best if you have patience and want to reduce total interest paid.

The Snowball Method-Pay off smallest debt first

List all debts from smallest to largest amount. Clear the smallest one first. Use that momentum to attack the next.

This gives faster wins and keeps you motivated. Best if you feel overwhelmed and need quick progress.

Pick the one you will actually stick to. A plan you follow beats a perfect plan you abandon.

Most people can't. And that's completely okay.

Managing debt while handling life-work, family, stress-is genuinely hard. Negotiating with banks takes time and knowledge. Staying consistent with a budget takes support.

This is exactly where FREED comes in.

FREED is India's first Debt Relief Platform. Here's exactly how the 6-step FREED process works:

Step 1-We Evaluate 

We look at your total debt, your income, and your situation. We build a clear picture of where you stand.

Step 2-We Budget 

We create a customised monthly budget for you. Every rupee is accounted for-including a savings amount for your debt repayment.

Step 3-You Enrol 

You officially join the FREED program. From this point, you're not alone-our team handles the hard parts.

Step 4-You Save 

We open a Special Purpose Account for you. Every month, you deposit your savings amount there. This money is dedicated only to debt repayment.

Step 5-We Negotiate 

Once you've saved enough, our experts negotiate with your creditors. We push for maximum reductions on your outstanding debt-so you pay less than what you owe.

Step 6-You're Free 

Debt cleared. Fresh start. You walk away with a plan to rebuild your financial life-and the knowledge to never fall back.

Plus, while you're in the program:

• We take all collection calls on your behalf-no more harassment

• We provide legal support if needed

• We guide you on rebuilding your CIBIL score