Why are many Indians in Debt?

When we Google just two words, "Indians" and "Debt," the most common question that pops up is, "Why are many Indians in debt?" It's a question that crosses our minds yearly. The answer, though seemingly simple, is rooted in human behavior. This encompasses taking loans for essentials like homes and cars, as well as for more luxurious things like a PS5. Financial difficulties or unexpected medical emergencies also contribute to this debt cycle. However, the real challenge arises when people struggle to manage this debt.

For example: You take a house loan, diligently pay its EMI, but suddenly lose your job. With no means to pay, you miss one payment, then another, and soon collection agents start buzzing. The same thing can happen if you've taken out a loan for a medical emergency and find yourself with limited income when it's time to repay.

In 2020, a Credit Information Company (CIC) reported that around 40 crore people in India were in debt, a number that has likely surged since. The question then becomes: How can we find a solution? The straightforward answer lies in financial management or planning. This not only helps reduce current debts but also charts a course towards a debt-free future.

But what exactly is financial planning? It's more than just understanding your loans; it involves gaining insights into various expenses, implementing effective budgeting, saving a portion of your income, dealing with creditors, and protecting yourself from harassment calls. While this may seem like a daunting task, especially in times of stress, we at FREED have simplified the process by creating debt relief plans tailored to different budgets. By enrolling with us, you not only embark on a journey to financial freedom but also set yourself on the path to a debt-free life.

Now, let's delve deeper into the importance of financial planning. Imagine having a clear picture of your income, expenses, and debts. With this understanding, you can create a budget that aligns with your financial goals and helps you allocate resources wisely. This budgeting process isn't just about restricting spending; it's about making intentional choices that bring you closer to financial stability.

Moreover, financial planning involves setting aside a portion of your income for savings. This creates a safety net for unexpected expenses and ensures that you're not caught off guard by emergencies. It's a proactive approach that promotes financial resilience.

Dealing with creditors can be a daunting task, especially when you're facing financial challenges. A well-thought-out financial plan includes strategies for negotiating with creditors, possibly restructuring payments, and finding manageable solutions to avoid the downward spiral of debt.

One significant aspect of financial planning is protecting yourself from the stress and anxiety caused by constant harassment calls from collection agents. Establishing communication channels and negotiating realistic timelines can alleviate some of this pressure, allowing you to focus on your financial recovery.

At FREED, we understand that implementing financial planning might seem overwhelming. That's why we offer plans tailored to different budgets. Our goal is to guide you toward financial freedom, providing not just solutions to your current debt challenges but also paving the way for a debt-free future.

In conclusion, the key to breaking free from the cycle of debt lies in understanding and managing your finances. Financial planning is not a one-size-fits-all solution, and that's why at FREED, we're committed to offering personalized solutions that cater to your unique needs. By taking this step, you not only gain control over your current debts but also secure a brighter, debt-free future.