What if you had borrowed money from Axis bank credit card and failed to pay your dues on time? You will be notified by your bank, either by phone or email, prompting you to pay the dues immediately. In many situations, a few days’ leeway is given during which you can pay the dues. If you don’t pay your outstanding dues on time, the bank may charge you a late payment fee after this grace period. It will be considered a default if you don’t pay your dues within three months or 90 days after it was due.
How a credit card default will affect you
The bank will charge a greater interest rate if you default on your dues numerous times, as you will be considered a risky borrower.
The credit agencies will be notified of a default, which will reduce your credit score and damage your credit history.
You may have trouble obtaining a loan or be charged a greater rate of interest.
Many organizations conduct credit checks on potential applicants these days. A bad credit report might prevent you from obtaining the job of your dreams.
What to do if you’ve defaulted on a loan?
Contact your bank and talk to your loan officer: If you have a reasonable excuse for not paying the dues in a certain month, such as an emergency in your family that required the use of funds, the bank may be willing to accept it. However, make sure you pay the dues next month, as this will help you bring your account up-to-date.
Request for a restructure: If you’re finding it difficult to pay the credit card loan on time, you can approach your bank and request them to restructure your loan. This involves converting the credit card dues to EMIs and extending the tenure of the loan so that your monthly instalments are lower.
Make a lump sum payment: If you have some extra cash, you can make a lump sum payment towards your loan and reduce the principal amount. This will help bring down your EMIs.
Consider a balance transfer: If you’re paying a high rate of interest on your loan, you can consider transferring the balance to another bank that’s offering a lower rate of interest. This will help reduce your monthly instalments.
Refinance your loan: You can approach another financial institution to refinance your loan. This involves taking a new loan to repay the old one. You can choose a longer tenure for the new loan so that your EMIs are lower.
Sell assets: If you have any assets such as a car or property, you can consider selling them to raise funds to repay your loan.
Take a personal loan: You can take a personal loan from another bank to repay your credit card loan. Personal loans usually have lower interest rates than credit card loans.
If none of these are feasible, explore credit card settlement with your bank.
AXIS Bank Credit card Loan Settlement
If you are facing severe financial difficulty, you can settle your outstanding credit card loan for a lower amount than what you currently owe. This means you agree to repay a portion of the loan amount and the bank considers it as “settled.” This will help you save money and come out of your financial problems.A credit card settlement occurs when the lender agrees to accept a lower amount than the entire owed balance and waives or writes off the rest of the debt.This sort of transaction is typically approved by a bank under specific conditions, such as if you lose your job or have an emergency medical condition.The bank may only allow the loan settlement after a specific amount of time, such as three months.The bank will record the loan as closed in its records, and the borrower will no longer be a bank loan customer.
What not to do if you’ve defaulted on your loan
Don’t ignore the problem: If you’re facing difficulty in repaying your loan, the best thing to do is to talk to your bank and try to work out a solution. Ignoring the problem will only make it worse.
Don’t default again: Once you’ve defaulted on your loan, make sure you don’t do it again. This will only make the situation worse and damage your credit history.
Don’t close the account: Many people think that closing the account will help them get out of a bad situation. However, this is not the case. Closing the account will only make it harder for you to repay the loan and improve your credit score.
Credit card loan settlement is a great way to save money on your outstanding credit card loan. With our help, you can get out of debt and improve your financial situation. Contact us today to learn more about how we can help! We can help you to settle your loan at 50% or less. Please register at this link today to get a call from our legal and financial experts.