Which Debt Solution is suitable for you in COVID19?

When the whole world faced the COVID-19 pandemic, many people lost their jobs, businesses were shut down and income was heavily impacted. In order to meet the cost of regular needs, many people borrowed money, taking personal loans from banks, family and friends. COVID-19 not only affected human health, but also financial health, as many people fell victim to its relentless attack. Covid 19 wasn’t the only thing attacking the people, creditors were also playing their hand at debt recovery and doing everything in their power to recover monies owed to them in any way possible.

In India, dealing with debt has largely been ignored by the general public. A lack of knowledge and understanding of how debt works and what solutions are available has meant that debt problems have been left unresolved. People falling into debt are likely to receive help from either friends and family or asking the bank for a new loan. It can be intimidating to apply for a loan from the bank if there’s no money left to recover the amount. In this case, harassment from creditors begins, disturbing one’s mental health as well as trying to extract as much money from you as possible. That’s why Single Debt regularly releases information to help you build your knowledge around financial health. Being the only debt management agency in India, Single Debt involves itself in reducing harassment from creditors and collection agents. With an expert team of debt counsellors, it’s not only advice that is given, but full support around managing your debts.

Debt Management is never a one-size-fits-all strategy. If you are seeking help with your debts, it is important that you find a suitable debt company that can tailor a plan to your requirements. There are a few companies that deal with debt issues, but their services are generally limited to debt settlement, which doesn’t work for everybody. But you must choose wisely, a few of these companies have been reported as scammers, so don’t end up further in a bigger hole than you need to be, as these companies will take you for whatever you have. In order to help you find what works best for you, let’s look at some of the debt relief strategies. Based on your problem, you can then determine which strategy would be most effective.

Debt Management Plan

An alternative solution to resolving your debt is a reputable debt management program. Single Debt is the only company that offers debt management true to its terminology. A reduced repayment plan is set to what you can afford, this means that you pay what is left from your income after your expenses have been covered. All debts are taken into consideration, meaning all of your creditors will be paid in a consistent payment plan. In this program, Single Debt negotiates a lower interest rate with the recovery agency. A sustainable plan is offered after calculating your expenses and remaining balance. The amount that is left after expenses are paid is your disposable income. With this disposable income, debts are repaid to lenders in a structured manner. If you can’t opt or are not willing to ask for another loan, a Debt Management plan might be the right option for you. Unlike other Debt-solution agencies, SingleDebt couples these plans with financial education and advice on budgeting to help give you a well-rounded picture of your situation. It is an effective way to build your financial health.

Debt Settlement

Another option to resolve debts is debt settlement. Even though this method appears to be simple, you cannot rely on it. It is important to understand the possible consequences you may face. Once you are aware of this information you can make an informed decision as to which strategy to follow.

At first, your debt advisor will settle your debts with creditors or a recovery agent with a discount., so you don’t have to pay the full amount of debt that you owe. Sounds great and seems like a convenient way to pay off your debt. However, one of the biggest downsides is that it dramatically damages your credit score, making it more difficult to lend a loan in the future. This is a red flag to potential lenders in the future because it tells them you might not pay back your debts.

Which debt management program will you choose?

Now that you know there are options available to choose from, you can wisely choose your debt solution. Make sure you evaluate your overall requirements before you select or finalize an avenue in order to determine which option best suits you.

A smart tip to recognize a company’s profile is to see if they have positive reviews and a trustworthy website.

If you want more information on debt solutions, or need to speak to an advisor about your circumstance, why not contact Single Debt.

Disclaimer

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. City Credit Management LLP is not liable for any decision arising out of the use of this information.