How to repay your debts: Guide to debt management services in India
You might be wondering how a debt management service can make you debt-free or repay your debts with a sufficient amount of income. In order to repay your debts, you just need an affordable debt management plan rather than keeping hope that you can pay it all on your own. This is not only stressful but also impossible if you are losing your income.
Choosing a debt management service in India is the only way you can get your life back on track. The concept is not very well known in India but was first coined in the USA. Due to a large number of people losing their jobs during the Covid era and opting for huge amounts of unsecured loans to meet their needs, the Reserve Bank of India initiated a debt management plan. It was used to spread awareness among people who are unable to repay their unsecured loan and need a financial advisor to provide a solution to repay their debts
Those looking for more information and how a debt management service in India can help them, this blog will provide you with services available and how to achieve their financial goals.
What is a debt management service and how does it work?
A debt management service involves an advisor who will conduct a counselling session and understand your financial situation, as well as the amount of debt you hold. They will go through your financial situation and by finding out the expenses and the income. This will then determine the disposable income. Based on the remaining amount from your income minus expenses, you will start repaying your debt based on your disposable income. Our experts will also minimise your expenses by providing a financial plan that will cut off or restrict to spend for a certain period.
Once your disposable income is ready, we will negotiate with creditors or banks to accept a lower monthly payment so that you can achieve your financial goals and at the same time become debt-free.
The benefits of using debt management services
There are many benefits of using a debt management service in India:
- You will have a personal account manager to look after your debts and help you to repay and resolve your problems.
- You will be able to start focusing on your financial growth.
- We will help you manage your debts in an affordable way through our debt management services.
- A legal way of negotiation will be done with banks or creditors to accept a lower monthly payment.
- This procedure will prevent you from being harassed by the third-party agent for the recovery of debts during the time of the procedure, thereby decreasing your mental stress.
What to expect from a debt management service?
When you are working with a debt management service in India, you are greatly innovating your approach towards repaying your debts with the help of a debt advisor. They will be a point of communication with your creditors. You can always receive your answers to your questions from your advisors.
For a person to know a complete detail about the concept, it is necessary to understand the actual meaning of debt management service vs debt settlement.
In order to get out of debt, debt management plans and debt settlement are two different concepts. With a debt management plan, you will have a personal account manager who will manage all your debts and create a lower monthly payment plan. They negotiate with creditors or banks to accept a lower monthly payment so that you can become debt free within a certain period of time.
In the concept of debt settlement, a negotiation is done with creditors to settle your debts for less than what you owe. A person choosing debt settlement may find this the most reliable option if they are unable to make their payments or if they are facing financial hardship.
However, it is important to note that both a debt management plan and a debt settlement can have a negative impact on your credit score.
How to choose the best debt management service for you
If you are struggling with the repayment of debts, the last thing that will hit the course is to stop paying them. This can lead to recovery agent harassment and severely affect your credit score. If you feel you are not in a position to repay your EMI’s, a debt solution is always available. A debt solution program with us will give you an affordable Debt Management plan so you can repay your debts and live stress-free. Contact SingleDebt on +91 961 910 3594 or fill out the form either on the home page or contact page.