What role does a loan settlement agency play in debt settlement?


The loan settlement process in India might seem straightforward on the surface, but it is only when you get trapped in debt that you truly understand the complexities. In this situation, a loan settlement agency could provide you with some relief by making the entire process smoother.

Although debt settlement is a fairly new concept in India, it is catching pace quickly. FREED is India’s 1st debt relief platform, built by a team that has more than 50 years of combined experience in the debt relief space. The aim is to assist Indian consumers who are going through financial hardship and help them regain financial freedom and become financially independent.

Let us see what role FREED, or any other loan settlement agency plays in the loan settlement process in India.

1. Negotiate the Terms of the Settlement With the Creditors

One of the key roles that loan settlement agencies have in the settlement process is negotiations with creditors. The most crucial aspect of the loan settlement process is negotiation because it determines the amount of the loan that will be forgone. Credit issuing companies and banks forgo as much as 40% of the outstanding loan amount in some cases.

Therefore, it is imperative to have strong negotiation skills to get the best deal possible. This is the reason why most individuals and companies take help from professional loan settlement agencies that are experienced in this field.

2. Do a Thorough Debt Analysis

Another very crucial role of loan settlement agencies is the analysis of the debt at hand. A clear understanding of the debt amount, terms, tenure, and other conditions is necessary to devise a suitable debt-relief strategy that can provide a solution to the debtor without affecting the credit score adversely. Experienced debt relief companies like FREED use advanced technologies such as Artificial Intelligence and other high-tech tools for in-depth analysis and decision-making in loan settlement regard.

3. Devise a Customised Debt-Relief Program

There is no one-size-fits-all strategy that can be used to get out of all kinds of debt traps. Therefore, it is important to have a sound knowledge of different ways in which the debt can be settled so that the debtor can choose the one best suited for their situation. FREED has an extensive understanding of different ways in which debt can be settled.

Therefore, it customises the programs for each debt-trapped client to offer the best solution possible. The programs are customised, keeping in mind the loan amount, conditions, status, financial condition of the borrower etc. This is the reason why customised debt relief programs have an astonishing success rate as compared to generic debt-relief solutions.

4. Pre and Post-Litigation Assistance

Some loan settlement agencies also provide litigation assistance associated with loan settlement to their clients. FREED, for instance, aims to provide complete financial freedom to its clients. Therefore, it safeguards its customers against unlawful collection practices from Creditors and their associates through the CHPP program. The Creditor Harassment Protection Program (CHPP) provides pre-litigation services to clients alongside educating them about their rights pertaining to loan settlement.

Wrapping Up

Hence, we see that a loan settlement agency could be of great help, especially if the loan has been piling on for too long or the debtor does not have much knowledge about the nuances of debt settlement. However, due care must be taken in choosing the right loan settlement agency, or you can lose a lot of money by way of commission.

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