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

The truth is that some are fraudulent debt reduction schemes. However, there are legitimate, reliable sites, and it's simple to distinguish between them.

There is some truth to this myth. There are dishonest businesspeople in the market. They make grandiose claims. They want hefty upfront costs. They employ coercive methods. After then, they vanish.

You should be extremely cautious because these scams are genuine.

However, the presence of scams does not imply that the idea as a whole is fraudulent. Despite the existence of bank fraud, banks still exist. Despite the existence of medical fraud, hospitals still exist.

Here's how to distinguish a genuine debt relief platform from a fraud: 

Since 2021, FREED has been in operation. We have assisted more than 10,000 Indians in paying off their debt. Before you commit to anything, we are open and honest about our costs, our procedures, and what is actually possible.

The truth is that debt alleviation is a methodical procedure rather than a miracle cure. It requires perseverance, self-control, and time.

If all of your debt disappeared with a single phone call, wouldn't that be amazing? That is not how it operates, and any platform that claims otherwise is deceiving you.

Settlement or consolidation of debt requires time. The amount of time depends on:

• Your entire outstanding debt

• The monthly amount you can pay or save

• The number of lenders participating

• How helpful your lenders are when you're negotiating

Common timetables:

These are approximations of the real timelines. But the important thing is that it's a journey rather than a quick fix.

Those who get this from the beginning and maintain consistency month after month are the ones who thrive in debt relief programs. In the end, the prize is tangible and long-lasting—it is truly debt-free, not merely temporary.

The truth is that creditors are legally entitled to get in touch with you to demand payment. However, harassment is prohibited, and FREED manages all correspondence on your behalf.

When you sign up for the FREED program, all correspondence with creditors is handled by your own relationship manager. Dealing directly with lenders is no longer necessary.

To be honest, though, this does not imply that all calls end on the first day. While their money is outstanding, banks and lenders are legally permitted to get in touch with you. The moment you enrolll in a program, that right does not vanish.

What is altered is:

• All interactions and correspondence with your lenders are managed by your relationship manager.

• On your behalf, FREED informs creditors of your circumstances.

• If any legal notices are received, pre-litigation assistance is given.

• FREED Shield is instantly triggered if any recovery agent engages in harassment.

Calls for a lender's account terminate once the loan has been paid off and closed. The calls diminish and finally cease entirely as your debts are paid off one by one.

On day one, the program doesn't put an end to the noise. However, you don't have to deal with the noise alone because it places a skilled, knowledgeable team between you and it.

The truth is that the effect on your CIBIL score is transient rather than long-lasting.

Your CIBIL score is impacted by debt settlement, yes. For the accounts that were settled, "Settled" rather than "Closed" will appear on your credit report. Your score does suffer as a result of this.

What people fail to notice, though, is that your score was already declining each month if you were already in default. A settlement puts an end to that ongoing deterioration. At one point, it repairs the harm.

Furthermore, "Settled" in your report does not equate to "broken forever."

The realistic timeline is as follows:

Paying all existing bills on time is crucial after settlement. Don't use more than 30% of your credit limit. Avoid applying for too many loans at once.

In order to help you focus on your path to debt freedom, FREED may also assist you in determining which of your existing accounts are having the biggest negative effects on your financial well-being.

The truth is that asking for assistance is a wise decision rather than a sign of failure.

In India, this is a very cultural barrier. People view debt as a personal embarrassment. Instead of reaching out, many suffer in silence for years out of embarrassment or fear of being judged.

However, consider it this way. You would see a doctor if you had a major health issue. You wouldn't try to indulge yourself at home and keep it a secret from everyone.

One financial issue is debt. Financial doctors are debt counselors. Visiting them is wise, not embarrassing.

From Bhopal to Patna, from Lucknow to Surat, hundreds of thousands of Indians have talked to FREED. The same thing was mentioned by several of them: "I wish I had called earlier."

You have more possibilities the earlier you seek assistance. There are fewer paths available the longer you wait.

Counselors at FREED are taught to listen without passing judgment. Every discussion is private. No one will divulge anything to your neighbors, family, or employer.

Before you trust any debt relief platform, consider this easy checklist, as there are a lot of possibilities available online:

Make these five inquiries:

1. Do they provide a free initial consultation? Before requesting payment, any reputable platform will have a free conversation with you. Walk away if they demand payment up front before even describing the program.

2. Before you sign anything, are their fees stated in detail? Transparency cannot be compromised. Before you commit, you should be certain of the precise amount and timing of your payment.

3. Do they go over the procedure step-by-step? Sincere platforms outline the events, their sequence, and your responsibilities at each level. A debt relief scheme hides details and utilizes ambiguous wording.

4. Do they need your permission to do anything? Every settlement offer, every negotiation, and every payment should be approved by you. Any business that acts without your permission is suspicious.

5. Can you confirm their clientele and reviews? Seek out genuine reviews via word-of-mouth, reliable websites, or Google. Ask them to put you in touch with former customers. There is no actual client trail for scams.