COULD NOT PAY CREDIT CARD BILL FOR 3 MONTHS FOR 5 MONTHS

[zaidkol]

Due to some unforeseen circumstances and heavy loss in business after lockdown could not pay HDFC credit card bill for 5 months, Bank has closed my card and did NPA.
Collection agencies are asking for settlement or Restructuring.
Could you people suggest what is better for in this situation so that i could not face any major issue in future.

 

[WhoU]

For the first time in this forum I have seen someone fall into the trap of credit card debt. Rest of us are here only to make maximum rewards out of credit cards.
I know my comment isn’t helpful to you but stay strong brother. This too shall pass.

 

[starstruck]

Due to some unforeseen circumstances and heavy loss in business after lockdown could not pay HDFC credit card bill for 5 months, Bank has closed my card and did NPA.
Collection agencies are asking for settlement or Restructuring.
Could you people suggest what is better for in this situation so that i could not face any major issue in future.

How much is the amount? and what are they asking in case of settlement and in case of restructuring? This info can help judge the option better.

 

[zaidkol]

How much is the amount? and what are they asking in case of settlement and in case of restructuring? This info can help judge the option bearon

For the first time in this forum I have seen someone fall into the trap of credit card debt. Rest of us are here only to make maximum rewards out of this card.
I know my comment isn’t helpful to you but stay strong brother. This too shall pass.

thank you very much

 

[zaidkol]

How much is the amount? and what are they asking in case of settlement and in case of restructuring? This info can help judge the option better.

around 5 lacs, I am requesting from everyone available here In this forum who is expert please reply with proper solution what should I do?

 

[zaidkol]

For the first time in this forum I have seen someone fall into the trap of credit card debt. Rest of us are here only to make maximum rewards out of this card.
I know my comment isn’t helpful to you but stay strong brother. This too shall pass.

I am requesting from everyone available here In this forum who is expert please reply with proper solution what should I do?

 

[Flashrider]

Firstly, figure out if you can afford to pay the full amount or would you rather pay in installments.

Depending on the same, talk to your bank regarding payment structure they can offer. Now, given your loan has turned NPA they would have most probably transferred the account to their recovery agents and hence the matter can get tricky.

While even a write off would not have any affect in your life other than in credit sector. Since one may later require many types of loans further in life a write off can have a disastrous effect. While your score will improve with time anyhow but a write off or settlement will leave you ineligible for many credit products.

What to do: Talk to your bank (Not recovery agents) regarding restructuring. Explain how you do not want any settlement but you would pay in full. Either one time or in installments. Whenever you close the account, please insist on a 'No dues certificate '

 

[Walter White]

Due to some unforeseen circumstances and heavy loss in business after lockdown could not pay HDFC credit card bill for 5 months, Bank has closed my card and did NPA.
Collection agencies are asking for settlement or Restructuring.
Could you people suggest what is better for in this situation so that i could not face any major issue in future.

If bank has marked it as NPA, means your debt has been sold off to collection service. Now as for collection agencies, you can either get a court order which would mean a recovery agent cannot resort to illicit means to recover money and you will be granted interim relief if things go your way or file FIR for harassment and contact RBI.

As someone who used to work for parent company of CIBIL and was a part of their their US division. I can give you an idea of what happens generally in the US.

Generally they collectors have a time frame in which they can make you pay the loan. Once the time is up, they can't do anything. The worst case for you can be if they drag you to court and things go against you. In that case, your assets are prone to get impounded or you have an obligation to pay a portion of your wages to collections. The average case is a settlement where the collector takes a significant write off. If you still can't pay it off, personal bankruptcy is the last resort.

 

[zaidkol]

Firstly, figure out if you can afford to pay the full amount or would you rather pay in installments.

Depending on the same, talk to your bank regarding payment structure they can offer. Now, given your loan has turned NPA they would have most probably transferred the account to their recovery agents and hence the matter can get tricky.

While even a write off would not have any affect in your life other than in credit sector. Since one may later require many types of loans further in life a write off can have a disastrous effect. While your score will improve with time anyhow but a write off or settlement will leave you ineligible for many credit products.

What to do: Talk to your bank (Not recovery agents) regarding restructuring. Explain how you do not want any settlement but you would pay in full. Either one time or in installments. Whenever you close the account, please insist on a 'No dues certificate '

thank you very much

 

[Cosmicgaze]

I had defaulted my hdfc by 3 months due to health reasons. However I paid it in full but it was late the card was already closed by hdfc tho it was not sent to recovery so my cibil only has it marked as closed.
I believe your cibil would be marked as written off since it got sold to collection agency’s.
However your best bet would be to try and talk to someone in Hdfc’s debt department or retail. Get it in writting. If they say they will get the cibil changed to closed if you pay the entire amount either as upfront or on a payment plan then that would be a better route. Else you can try settling with them. Settlement is still better than having written off. However, I think hdfc may brush it off saying we don’t have anything to do with it.
The recovery agency highly doubt would make a difference to your cibil score. If you can pay full then do so else pay whatever agreement you come to with them but avoid paying in cash. And get proof of payment from them. Just so that they do not harass you in future.

Also if what the person told me during my time back in 2017, that if the dues are still with the bank and person clears it off the person doesn’t get into black list or defaulters list. But if the debt gets to recovery agency then high chances would be on there.
I haven’t got pre approved offers from hdfc maybe cause I haven’t kept much funds in their account, but if I try to apply it goes through till it asks income proof. So I guess I have not been banned.

You can build your scores back again.
I wasn’t checking cibil during that time but while it was defaulted my equifax score dropped to 480 something and after I paid and it got closed my score directly jumped to 710. It’s now around 793

 

[nitba]

Due to some unforeseen circumstances and heavy loss in business after lockdown could not pay HDFC credit card bill for 5 months, Bank has closed my card and did NPA.
Collection agencies are asking for settlement or Restructuring.
Could you people suggest what is better for in this situation so that i could not face any major issue in future.

I'm not a financial advisor, but I can offer some general suggestions for your situation. It's important to consult with a professional or contact HDFC directly to discuss your specific circumstances and get personalized advice. Here are a few options you may consider:

1. Contact HDFC: Reach out to HDFC and explain your situation. They may be willing to work with you to find a solution, such as a repayment plan or debt restructuring. Communicating with them shows your willingness to resolve the issue and may help in negotiating better terms.

2. Settlement: Negotiate with the collection agencies for a settlement amount that you can afford to pay. A settlement typically involves paying a reduced lump sum to clear the debt. Ensure that you obtain written confirmation of the settlement terms before making any payments.

3. Debt Restructuring: Discuss the possibility of debt restructuring with HDFC. This could involve extending the repayment period, reducing the interest rate, or adjusting the monthly installments to make them more manageable for you. Debt restructuring can help you repay your debts in a structured manner.

4. Seek professional advice: Consider consulting a financial advisor or credit counseling agency. They can review your financial situation, provide guidance on the best course of action, and negotiate with the collection agencies on your behalf.

5. Rebuilding credit: Once you've resolved the issue, focus on rebuilding your credit history. Pay your bills on time, keep credit card balances low, and maintain a good financial track record. Over time, this will help improve your credit score.

Remember, these are general suggestions, and it's important to assess your specific circumstances and consult with professionals for personalized advice.