Credit card Settlement
5 months ago
i have home loan and credit card with same HDFC bank. i need to settle my credit card out standing. but not allowing housing loan department to settle my credit card outstanding. they told me in-case of settle your credit card, housing loan also got NPA. what will be solution to close my credit card.
A.Dear Client,
Both credit card and home loan is considered debt. In case you intend to settle one it will adversely affect your credit score and home loan too. From the query, it is not clear whether you are also a defaulter of repayment of a home loan you availed from the same Bank. So, the settlement of credit card dues shall not make you debt-free until and unless the home loan is repaid. Once a loan is not repaid by the borrower for any reason whatsoever, it is treated by the Bank as NPA and the Bank starts the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower. Usually, Lenders are not legally obliged to settle a debt lowering the outstanding lying against debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own, 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 the lender Bank, along with chargeable fees. Debt settlement is an agreement between a lender and a borrower/Guarantor in which the borrower/Guarantor 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 of fake entities. So, if you're considering settlement of dues, the Consumer Financial Protection Bureau(CFPB) suggests 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 crisis, there are also 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 counselling session with a certified credit counsellor can help you to discover your options and choose the right path ahead.
Both credit card and home loan is considered debt. In case you intend to settle one it will adversely affect your credit score and home loan too. From the query, it is not clear whether you are also a defaulter of repayment of a home loan you availed from the same Bank. So, the settlement of credit card dues shall not make you debt-free until and unless the home loan is repaid. Once a loan is not repaid by the borrower for any reason whatsoever, it is treated by the Bank as NPA and the Bank starts the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower. Usually, Lenders are not legally obliged to settle a debt lowering the outstanding lying against debt, but because they want to protect their bottom line, they may agree to a debt settlement to avoid further financial loss. You can try to negotiate a debt settlement on your own, 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 the lender Bank, along with chargeable fees. Debt settlement is an agreement between a lender and a borrower/Guarantor in which the borrower/Guarantor 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 of fake entities. So, if you're considering settlement of dues, the Consumer Financial Protection Bureau(CFPB) suggests 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 crisis, there are also 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 counselling session with a certified credit counsellor can help you to discover your options and choose the right path ahead.
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A.Dear Client
Banks sometimes link credit facilities, and settling one may affect the other. If settling the credit card puts your housing loan in jeopardy, it's essential to understand the bank's policies and how they are linking these facilities. Initiate a discussion with your bank to understand their specific policies and the potential impact on your housing loan. Ask for clarification on how settling the credit card might affect your home loan. Try negotiating with the bank to find a solution that allows you to settle your credit card while minimizing the impact on your housing loan. This could involve discussing alternative payment plans or settlements that don't trigger adverse consequences.
Banks sometimes link credit facilities, and settling one may affect the other. If settling the credit card puts your housing loan in jeopardy, it's essential to understand the bank's policies and how they are linking these facilities. Initiate a discussion with your bank to understand their specific policies and the potential impact on your housing loan. Ask for clarification on how settling the credit card might affect your home loan. Try negotiating with the bank to find a solution that allows you to settle your credit card while minimizing the impact on your housing loan. This could involve discussing alternative payment plans or settlements that don't trigger adverse consequences.
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