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What Happens If You Default Your Credit Card Bill In India?


Individuals who are frequent users of credit cards should be extra careful to pay the credit debit on time. If an individual defaults, the cardholder will be sent reminders frequently for settlement of any outstanding on the card account, through post, fax, telephone, e-mail, SMS messaging.

What Happens If You Default Your Credit Card Bill In India?

Banks and institutions can also engage third parties to remind, follow up and collect dues. Any third party so appointed, however, will adhere to the procedure on debt collection.
Defaulters are liable to pay total outstanding amount, including any charges which are yet to be charged.

If the balance amount on the card is not repaid within prescribed time, banks have all the right to mark lien and sell of the monies available in any any of the bank account
Incase of bankruptcy or death of the credit card holder, the account will be immediately cancelled.

The cardholder's property will be considered for settling any outstanding amount and should keep record of all costs, including legal fees and expenses incurred in recovering such outstanding.

Things to considered

  • Individuals can consider to pay the outstanding amount by using balance transfer method.
  • Credit card holder can pay from his savings account.
  • Control on spending habits to avoid more debt
  • Prioritize your credit card debt if you have many cards
  • Keep an eye on your cibil score

What is the solution?

It is better to take up the matter with bank or institutions. Individuals with huge credit debt, can consider converting it into an EMI instead of total loan outstanding amount.

Read more about: credit card debt
Story first published: Tuesday, September 13, 2016, 12:04 [IST]
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