What is the Credit Card Settlement process?
Once you land into Credit Card debt and struggle to clear the pending dues for a long time, the last option for you is Credit Card settlement. When finances get tight, people often set aside Credit Card bills for later payment since it is an Unsecured Loan type. It does not require any security or collateral if you fail to pay the dues. But the truth is, the more you delay the payments, the more dangerous it gets for you. Firstly, it may damage your credit score. Secondly, you may be vulnerable to problems at the time of borrowing. To save yourself from a financial crisis, you can opt for a Credit Card settlement process. Let’s get to know more about it in detail.
What is Credit Card Bill Settlement?
When you fall behind on a Credit Card payment, the bank may try to collect a part of the funds from you, if not the total bill due. For the settlement process, you can reach an agreement with your Credit Card issuer by paying less than what you owe and thus get rid of the debt faster or the bank may agree to not charge interest anymore.
For instance, ICICI Bank Debt Service is targeted at Credit Card users and Loan borrowers who are unable to repay their dues. As part of the service, the bank offers a Credit Builder Programme for customers interested in repaying the dues and improving their credit scores.
Is Credit Card Settlement beneficial?
Credit Card settlement is never a good choice because it is kind of declaring your bankruptcy. This can be a big blow to your credit rating as well as make it harder for you to borrow in the future. The settlement process should be your last resort if you are unable to pay the bill that has been pending for a long time. You can either choose to make a lump sum settlement or a workout agreement.
There are several benefits to settling your ICICI Bank Credit Card:
It can help you save money
You can get out of debt faster if you pay a lump sum or get into a workout agreement with the bank
You won’t have to deal with any calls from the bank asking for you to settle the payments.
Other ways to resolve the mounting Credit Card debt:
You can apply for an ICICI Bank Personal Loan with ICICI Bank and use the loan amount for debt consolidation
You can pledge your gold jewellery to get funds to clear your dues
If you have been making investments in Shares, Mutual Funds or FD, you can withdraw some amount to repay the Credit Card bill
You can also explore the option of balance transfer. If your bank is charging enormous Credit Card interest rates, you can opt for a balance transfer of the Credit Card facility from ICICI Bank and pay the debt at a lower interest rate.
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