I cant pay my Loan Emi
1 month ago
I want to Settlement but Navi app said they don't have Settlement Option
What to Do?
A.Dear Client,
When a borrower defaults on loan repayments for three consecutive installments, the bank typically initiates a routine course of action for loan recovery, marking the loan as a bad loan or Non-Performing Asset (NPA). The borrower becomes personally liable for the outstanding debt. Negotiating a debt settlement can be pursued individually or through third parties like debt relief companies. In such negotiations, payments are made to the settlement company, and a portion of the loan balance is forgiven by the lender.
For independent negotiations, offering to pay around 25% to 30% of the outstanding balance in exchange for forgiveness on the remaining amount can be a starting point. It is essential to be cautious when involving debt settlement companies, as scams are prevalent. Checking with state attorney general's offices and local consumer protection agencies can help identify legitimate services. Some states require licensing for debt settlement companies, providing an added layer of protection.
While debt settlement can alleviate financial burden, it has potential downsides. It affects credit scores, making it harder to secure credit or favorable interest rates in the future. Additionally, settling a debt may have tax consequences. Seeking guidance from a certified credit counselor can provide insights into available options and help make informed decisions.
When a borrower defaults on loan repayments for three consecutive installments, the bank typically initiates a routine course of action for loan recovery, marking the loan as a bad loan or Non-Performing Asset (NPA). The borrower becomes personally liable for the outstanding debt. Negotiating a debt settlement can be pursued individually or through third parties like debt relief companies. In such negotiations, payments are made to the settlement company, and a portion of the loan balance is forgiven by the lender.
For independent negotiations, offering to pay around 25% to 30% of the outstanding balance in exchange for forgiveness on the remaining amount can be a starting point. It is essential to be cautious when involving debt settlement companies, as scams are prevalent. Checking with state attorney general's offices and local consumer protection agencies can help identify legitimate services. Some states require licensing for debt settlement companies, providing an added layer of protection.
While debt settlement can alleviate financial burden, it has potential downsides. It affects credit scores, making it harder to secure credit or favorable interest rates in the future. Additionally, settling a debt may have tax consequences. Seeking guidance from a certified credit counselor can provide insights into available options and help make informed decisions.
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A.Dear Client,
A borrower is held liable personally for his or her debt for non-payment of the outstanding amount of the loan. Once the repayment of the loan stops or bounces for consecutive 3 instalments, the Bank initiates a routine course of action for recovery of the loan from the borrower marking the loan as a bad loan/NPA. You can try to negotiate a debt settlement on your own if your pocket permits, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's(AG) office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial burden, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
A borrower is held liable personally for his or her debt for non-payment of the outstanding amount of the loan. Once the repayment of the loan stops or bounces for consecutive 3 instalments, the Bank initiates a routine course of action for recovery of the loan from the borrower marking the loan as a bad loan/NPA. You can try to negotiate a debt settlement on your own if your pocket permits, but sometimes it's typically done through third parties like debt relief companies, which you may hire to negotiate the settlement matter with the lender on your behalf. With this method, you will make payments to the debt settlement company rather than your creditors/lenders, along with any fees. Debt settlement is an agreement between a lender and a borrower in which the borrower repays a portion of a loan balance and the lender forgives the balance. You may consider starting the negotiation by offering to pay 25% or 30% of your outstanding balance in return for forgiveness on the rest. But, it may be noted that while there are legitimate debt relief/settlement companies, there are also many scam operations. So, if you're considering one, the Consumer Financial Protection Bureau(CFPB) suggests for contacting your state attorney general's(AG) office and local consumer protection agency to ask if they have any consumer complaints on file about that company. Some states require that debt settlement companies be licensed, which may provide some added protection. Although a debt settlement can offload some of your financial burden, there are also a few potential risks and downsides to consider. First, a debt settlement will affect your credit score. That will make it more difficult for you to get credit or good interest rates in the future. Another potential drawback is that when you settle debt, you could face tax consequences. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
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