Unable to pay EMI and credit card outstanding
3 months ago
My EMI and credit card payment exceeded my salary amount resulting unable to pay all dues. RBL bank's recovery agent/customer care are giving threatening to send recover agent to my locality. I have sent email to customer care and headcardservice department. Now what to do please advice.
A.Dear Client,
Facing financial challenges can be stressful, and it's important to handle the situation carefully. Firstly, try to communicate with your bank and explain your financial difficulties. Share a detailed breakdown of your income and expenses to demonstrate your financial constraints. Request for a revised repayment plan or extension that aligns with your current financial situation.
Document your communication with the bank and recovery agents, including any threatening language. If you feel harassed or threatened, you can file a complaint with the banking ombudsman, a regulatory authority that handles customer complaints against banks. The ombudsman will independently review the matter and work towards a fair resolution.
Consider seeking advice from a financial counselor or consultant who can help you navigate your financial challenges and provide guidance on debt management. Also, explore options like debt consolidation or restructuring with the bank.
Remember to stay proactive in addressing the issue, keep all communications documented, and seek professional advice to find a sustainable solution to your financial difficulties.
Thankyou
Facing financial challenges can be stressful, and it's important to handle the situation carefully. Firstly, try to communicate with your bank and explain your financial difficulties. Share a detailed breakdown of your income and expenses to demonstrate your financial constraints. Request for a revised repayment plan or extension that aligns with your current financial situation.
Document your communication with the bank and recovery agents, including any threatening language. If you feel harassed or threatened, you can file a complaint with the banking ombudsman, a regulatory authority that handles customer complaints against banks. The ombudsman will independently review the matter and work towards a fair resolution.
Consider seeking advice from a financial counselor or consultant who can help you navigate your financial challenges and provide guidance on debt management. Also, explore options like debt consolidation or restructuring with the bank.
Remember to stay proactive in addressing the issue, keep all communications documented, and seek professional advice to find a sustainable solution to your financial difficulties.
Thankyou
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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 installments, 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 make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loan for any reason whatsoever. If a suit for recovery of an outstanding loan from the borrower is filed by the Bank before a Civil Court, after hearing both parties Court may pass an order for attachment of collateral security for both the borrower and guarantor for recovery of the loan. 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. 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 score. 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 installments, 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 make a prayer to the Bank for some more time to settle the dues but cannot escape yourself from your liability of repayment of your loan for any reason whatsoever. If a suit for recovery of an outstanding loan from the borrower is filed by the Bank before a Civil Court, after hearing both parties Court may pass an order for attachment of collateral security for both the borrower and guarantor for recovery of the loan. 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. 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 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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