Think Debt Relief is a scam? Debunking common myths and misconceptions

Debt has been a hush-hush topic in our society, making it easy for myths and misconceptions to take shape. While there are a number of Debt Relief options available, a lack of education or awareness can impair people’s judgment when seeking financial aid.

With this article, we aim to dispel some common myths around Debt Relief and help you navigate its complexities, which, in reality, aren’t that complicated. Whether you’re in Debt or simply curious about the sector, addressing these myths can help you approach Debt Relief with confidence. You’ll find that with the right knowledge and assistance, it’s not only possible but absolutely worth it!

Let’s bust some myths and clarify what Debt Relief is (and isn’t!)

Key Takeaways

• Debt relief is for everyone, regardless of income.
• Debt relief is a process, not an instant fix - structured plans lead to lasting freedom.
• While creditor calls won’t stop immediately, support from experts can ease the stress.
• Debt relief may temporarily affect your credit score, but you can rebuild it over time.

1. Myth: Only High Earners Can Be Debt-Free

   Reality: Becoming Debt-free isn’t about how much you earn - it’s about how you approach your finances.

   “Bhai, paisa hota toh karz na chuka deta?”

   Debt often arises due to a lack of money or its mismanagement, which leads many to believe that Debt freedom is only achievable for those with high-paying jobs or ample disposable income. This myth can hold people back, making them feel their financial situation is hopeless.

   Debt relief is available to anyone feeling overwhelmed by their Debts and facing financial hardship. As long as you’re committed to paying back your Debt, there are options to help you manage it effectively. FREED - India’s 1st Debt Relief Platform - is dedicated to helping individuals achieve freedom from Debt burdens. FREED works with you to create a customized plan that aligns with your affordability. FREED negotiates directly with creditors on your behalf to secure the best settlement offer, making it easier to manage your journey to a Debt-free life. FREED also supports you with a structured plan, budgeting assistance, and financial guidance. Ultimately, FREED - a beacon of a Debt-free life - empowers you with unique programs tailored to help you succeed in your Debt repayment journey.

2. Myth: All Debt Relief Companies and Their Solutions Are the Same, and They Are a Scam

   Reality: Debt relief options vary widely, and not all companies are the same. Some solutions include consolidation and settlement, each designed to fit different financial situations.

   FREED offers a range of services tailored to specific needs. For instance, the Debt Resolution program involves negotiating with creditors to reduce the total amount owed, helping to pay off Debt and reduce the spiral of higher interest rates. Debt Consolidation Program, on the other hand, combines multiple Debts into a single loan with a lower interest rate, making payments more manageable. FREED works with you to create a customized plan based on your unique financial situation and provides support to help you stay on track. Unlike fraudulent schemes that promise unrealistic results or demand large upfront fees, FREED is transparent, professional, and offers a performance guarantee - you pay the fee only once you’re Debt-free.

   It’s important to remember that FREED legitimately focuses on finding the right solution for you. Be cautious of scams that offer “quick fixes” or demand payment before any work is done. Always research the company, check reviews, and confirm they’re accredited by relevant industry bodies to ensure they’re legitimate.

3. Myth: You Can Be Debt-Free Overnight

   Reality: Debt relief is a structured process, not an instant fix.

   What a magical world it would be if a wave of a wand could make all your Debt vanish overnight. In reality, becoming Debt-free requires time, commitment, and discipline. While FREED’s Debt Consolidation Program can simplify repayment by combining multiple Debts into a single payment, it doesn’t erase the Debt. Debt relief is a structured process that typically requires monthly payments over a period of 2–4 years, depending on your Debt situation.

   Expecting immediate results will only lead to disappointment. The redeeming fact, however, is that by choosing Debt relief and staying consistent with payments, you’re working toward a lasting solution. Remember, it’s a gradual journey, not a sprint, and requires a realistic commitment to see the process through.

4. Myth:Debt Relief Will Stop Creditors from Calling or Visiting You Immediately

   Reality: Enrolling in a Debt relief program won’t immediately stop creditors from contacting or visiting you - they have the right to collect what’s owed. However, harassment isn’t acceptable. When you enroll, dedicated teams step in to handle these calls on your behalf, explaining your situation to creditors to help reduce pressure. If needed, pre-litigation support is provided to help you respond to any legal or demand notices that may come your way. Even if creditors visit, FREED’s team will assist over the phone, easing the stress of these interactions. Your focus can then stay on what matters most: working toward Debt repayment and financial freedom.

   Once you receive a settlement offer and pay off the Debt, the calls and visits naturally reduce and eventually stop, bringing peace of mind.

5. Myth: Settling Your Debt Will Permanently Hurt Your Credit Score

   Reality: Debt relief’s impact on your credit score is temporary, and it’s often a stepping stone toward rebuilding a stronger financial future.

   Debt relief may initially cause a dip in your credit score. However, this dip is usually temporary. Once you complete the Debt relief program and continue practicing good financial habits - like paying bills on time and avoiding further Debt - your credit score can recover.

   Many people find that Debt relief helps them escape a spiral of unpaid bills and collections, allowing them to focus on rebuilding their creditworthiness rather than constantly managing mounting Debts. Over time, responsible financial behavior can help restore your credit profile, giving you a chance to rebuild with a clean slate.