Unable to Pay Credit Cards
Lafadz – In the world of credit cards, not a few who experienced out of control to fall into the problem of not being able to pay credit cards. Credit cards fail to pay, along with substandard credit status and doubtful credit classified as non-performing loans.
Usually, banks will not remain silent to save their customers’ inability to pay their credit cards, however the money used is their money so the bank will definitely try so that customers can still pay their credit cards.
There are 3 stages that banks do to save customers’ bad credit conditions, namely:
The first step to overcome the inability to pay customers’ credit cards, usually banks offer rescheduling. What is rescheduled?
Rescheduled here is the payment schedule and / or repayment period.
If this way the customer is still unable to repay his credit card debt, the bank will offer the second phase.
The second stage is reconditioning, or re-requirements, namely changing some of the terms and conditions on a customer’s credit card, which if possible can ease the burden.
Changes in terms and conditions that are possible include, for example, the time period, payment schedule, credit card interest, and so on.
The last stage is the restructuring stage. So complicate is the problem of not being able to pay customers’ credit cards so that restructuring or rearrangement is need.
This rearrangement could include reducing credit card interest rates, adding installments, deducting fines, and so on.
The three stages above are efforts that can be done by the bank to save the condition of not being able to pay customers’ credit cards. As a credit card customer, you only need to find out how the procedures are need.
However, actually if you are exposed to a problem not able to pay a credit card and want to complete. You should come directly to the bank to discuss. There are many attorneys out there to solve the problem of credit card debt. But sometimes it even costs more to pay for the attorney’s services. So it’s best, come alone to the bank and talk to customer service.
Banks are more happy if the customer does not run from responsibility
Sometimes, there are also many who are so large in credit card debt that they cannot afford to pay credit cards. And are afraid of debt collector threats, a customer runs away from his responsibilities. Even though this actually adds to the debt period and increases the amount of fines and interest that must be borne by the customer himself.
Credit card debt, the faster it is resolved, the better. Therefore, it is better to first resolve the credit card debt first.
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Debt Management Planning
Although reducing your credit card debt by half can make you “frugal” in the long run. But if you don’t have cash, negotiations to settle the debt will not produce anything. A reputable debt management company can act on your behalf and help you negotiate for long-term payment plans with creditors.
Under the terms of this debt management plan. Your creditors agree to release penalties and possibly lower interest rates while you pay monthly bills. During this time, your opportunity to owe will be tightene and this can take up to four years or even more.
Claiming bankruptcy is the last choice for you if you can no longer pay your debt. Or if your creditors don’t want to give you time to repay your debts. In general, bankruptcy can eliminate all your credit card debt, but you will have financial consequences.
There are two types of bankruptcy recognition:
- if you are still able to pay it off. you can submit this statement and redeem the debt in up to five years.
- if you cannot afford to pay off at any time. Because all your assets and property will not be enough to pay off debt. You can also file this statement and all your debts will be delete.
However, this bankruptcy acknowledgment can tarnish your credit card report. So as to reduce, or even negate, your chance to get credit in the future at an affordable rate.