Understanding debt and how to break free from it is essential in managing your finances and achieving peace of mind. People often find themselves in debt due to various reasons, including unexpected expenses, lack of financial knowledge, taking on multiple loans, and struggling to make payments. The journey out of debt can be challenging, but it's not impossible. In this blog, we'll explore how to become debt-free faster through a series of steps and practical advice.
Why People Get into Debt
Debt can happen to anyone, and it's crucial to understand why people get into debt. Life is full of financial challenges, and unexpected expenses can lead to borrowing money. Sometimes, lack of financial planning, knowledge and bad financial decisions can result in accumulating debt. People often take on multiple loans, creating a complex web of financial obligations. Difficulties in repaying loans, combined with the stress of debt, can make the situation even more challenging.
A recent survey by Saral Credit, a fintech platform, found that about 67% of India's population has taken a personal loan at some point. What's alarming is that 32.9% of these borrowers are defaulters, and this number continues to rise. It's clear that many individuals face difficulties in managing their debts, and finding a way out is essential.
Six Ways to Get Debt-Free Faster
1. Stop Borrowing More Money : The first and most important step towards financial freedom is to stop taking on new debts. Accumulating more debt only increases your financial liabilities, making it harder and longer to become debt-free. To break the cycle, refrain from borrowing any more money.
2. Track Your Spending : Understanding where your money is going is a fundamental aspect of managing debt. This becomes even more crucial when you're already in debt. Carefully tracking your spending can help you identify areas where you can cut unnecessary expenses, allowing you to redirect those funds towards debt repayment.
3. Monthly Budgeting : Once you've gained insight into your spending habits, it's time to create a monthly budget. Budgeting helps you plan and allocate your resources more effectively. During this process, you'll identify unnecessary expenditures that can be eliminated, and the money saved can be used to repay your loans.
4. Start Making Payments to Your Creditors : Once your monthly budget is in place, it's time to initiate discussions with your creditors. This is a critical step where you negotiate repayment terms and, if possible, seek favorable adjustments to your debt. Once these negotiations are settled, you can begin making your first payment, steadily reducing your debt burden.
Dealing with all the above mentioned steps can be overwhelming, especially for people who are facing financial hardships. Persistent calls from collection agents and the looming pressure of repayments can make this journey seem insurmountable. This is where FREED steps in.
FREED: Your Partner for Debt Freedom
FREED is India's first Debt Relief Platform, dedicated to helping individuals burdened by debt regain control of their financial lives. Our approach is simple and effective, involving a structured six-step process to help you achieve financial freedom:
1. We Evaluate: When you approach FREED with your debt-related concerns, our first step is to evaluate your debt situation. We determine the total debt amount and devise a tailored plan for your unique circumstances.
2. We Budget: Budgeting is a critical aspect of financial management. At FREED, we take care of this process for you. We ensure that every expense is accounted for, and based on your financial situation, we create a budget that includes a monthly savings component.
3. You Enrol: Budgeting is a critical aspect of financial management. At FREED, we take care of this process for you. We ensure that every expense is accounted for, and based on your financial situation, we create a budget that includes a monthly savings component.
4. You Savel: Remember the budget we created? It includes a designated monthly savings amount. We open a Special Purpose Account for you where these savings are deposited. This account acts as a safeguard to ensure your funds are allocated specifically for debt repayment.
5. We Negotiate: As you consistently save each month, we initiate negotiations with your creditors on your behalf. Our aim is to secure maximum reductions on your outstanding debt. By advocating for you, we work towards making your debt more manageable.
6. Freedom from Debt: As you diligently save and our negotiations progress, we help you inch closer to the goal of becoming debt-free. Your savings accumulate, and with strategic negotiations, we aim to provide you with the freedom you seek from the burden of debt.
The FREED Advantage:
In addition to this structured approach, FREED offers a range of services to assist individuals struggling with debt:
a) Creditor Communication: We offer our customers the option to transfer all calls from collection agents or creditors to our team.
b) Harassment Protection Program: Our platform shields you from relentless collection calls and harassment from debt collection agents.
c) Pre-Litigation Support: We offer guidance and support to protect your rights and interests. d) Debt Settlement: We negotiate with creditors to lower the overall debt amount, making it more manageable for you to repay.
If you find yourself burdened by debt and are seeking a way out, FREED is here to help. We understand the challenges you face and are dedicated to assisting you on your journey to financial freedom. If you want to know more about our debt relief program click here : https://www.freed.care/service-debt-resolution-program.
info@freed.care
0124-6663666 (Mon - Fri, 10AM - 7PM)
