Debt doctors play a useful role as long as they don’t scare the borrower into signing up and claim a ‘nexus’ with CIBIL to be able to‘fix’ credit records to remove the defaulter tag
Sucheta Dalal A retired banker told us that Indians do not really want to default on loan repayments. But they are scared of approaching the bank for a settlement, consolidation or a moratorium (in case of temporary difficulties) for fear of being treated callously or having their collateral assets unfairly adjusted against outstanding payments. This is a genuine fear. Also, when it comes to credit cards or auto, home and personal loans, the high interest and penalty compounds rapidly and most individuals have no clue about how to negotiate with banks.
At the same time, there are serious consequences to a loan default or allowing outstanding repayment, interest and penalty to mount. You could find yourself without access to loans, credit cards and other services for seven long years, probably when you may need them the most.