A.Dear Client,
as per the bank procedure The procedure to settle your Credit Card debt involves the following steps:
Reach out to your Credit Card issuer or a debt settlement agency.
Submit a request for Credit Card Debt settlement.
Explain the reason for your inability to repay the entire outstanding amount on your Credit Card.
Based on your situation, current income level, and their terms, your Credit Card issuer will agree to a settlement where you pay a lump-sum amount or work out a scheduled repayment plan.
You can choose to take up either of the options and follow your card issuer’s policy to finish the formalities.
as per the bank procedure The procedure to settle your Credit Card debt involves the following steps:
Reach out to your Credit Card issuer or a debt settlement agency.
Submit a request for Credit Card Debt settlement.
Explain the reason for your inability to repay the entire outstanding amount on your Credit Card.
Based on your situation, current income level, and their terms, your Credit Card issuer will agree to a settlement where you pay a lump-sum amount or work out a scheduled repayment plan.
You can choose to take up either of the options and follow your card issuer’s policy to finish the formalities.
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A.Dear Client,
You can try to negotiate a settlement of your credit card dues with the Banks on your own if your pocket permits and the bank agrees, 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. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit(CIBIL) score. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward.
You can try to negotiate a settlement of your credit card dues with the Banks on your own if your pocket permits and the bank agrees, 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. Finally, when you settle a debt with a credit card company, your account is closed once the settlement is complete. So you could potentially have no credit facility to use a credit card further owing to your poor credit(CIBIL) score. 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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