Credit Card Settlement

POSTED BY priyanka ON June 25, 2012 3:28 pm COMMENTS (8)


I have outstanding of 50k as credit card dues. I am unable to pay the amount to the cc company.

I willhave no choice but to settlement my account. Can you please advise implications of credit card

settlement and its affect on my CIBIL score and borrowing attractiveness in future.


8 replies on this article “Credit Card Settlement”

  1. priyanka says:

    Hi All,

    Thank you for your advice. i shall be paying minimum amount till i get a job in hand and then pay up the card.

  2. Shivashankar says:

    Talk to the CC Issuer and ask him to convert this 50k outstanding into EMI’s of 12,24,36,48 months (The more the time the more the interest…) just like what they would do to a Loan (Personal, Home)… They could cooperate with you since your situation seems genuine.

    Again that EMI amount would be just 2500-5000 very similar to your minimum amount due… Don’t mess with them… They will knock your doors and talk all kinds of words in the world to irk and humiliate you , so that you would scramble here and there and pay the money.

    All they want is their money…. Dont think that you can leave it now and handle with CIBIL later… You will never get a home loan in the future. Banks view it as a matter of trust and credit worthiness. Banks will think like, If you could not pay 50k back how can we give a Home Loan of 20 L, 30L, 40L…

    Think about it….

  3. Priyanka

    I would suggest not to settle the card . It gets really messy in future . Let me share with you what an be wrong later .

    1. Once the card is settled and matter is reported to CIBIL, that remark of ‘settled” will be there for atleast 7 yrs , note that its “atleast” means it can be there for 15-20 yrs also . Ideally consider it to be 10+ yrs .

    2. This will impact your score and it will go down

    3. In future it really gets tough to come back , your amount will anyways grow to a big number .


    1. The first thing I can suggest is that pay minimum balance (should be close to 2.5k each month) so that you dont pay penalty .

    2. Let the amount grow to 70-80k in a year , I am sure you will be able to pay it off then .

    3. Also you can ask your father or some one close to lend you that much money and you can pay high interest to them like 15-20% . This will help others and you maximum

    4. Talk to credit card company and tell them what stage you are in , Tell them you can pay off once you get a job in few months , I assume they would be little supportive .


  4. priyanka says:

    Hi Anshal,

    I have decided not to pay. Because even if i inform the bank, they will still keep asking for minimum payment and charging interest. also, to add to it, after i paid quite an amount , they closed my card , without any intimation and information.

    Now , they have asked if i want to settle the card by paying as little as I can, they will report to CIBIL that the card is settled ,

    what should I be worried about here? what documents should i take from the bank once the card is settled.

    1. Dear Priyanka, please sit easily. Let the matter be reported to CIBIL. As & when in future you find a job. Start cleaning your credit history by sensibly replaying your credit card dues & other loans.

      Please do not worry as of now as nothing is in your control now.

      Just relax & put your energy to find a new job.



  5. Dear Priyanka, please decide first of yourself that you want to repay or not at all. In case you want to repay to keep CIBIL score clean, please contact your Cr. Card issuer & tell the truth. The bank/FI of Cr. Card ‘ll try to help you to recover it’s own money.

    Alternatively, please intimate the Cr. Card issuer that you do not want to pay at all & let the matter be reported to CIBIL. Once you have money in your pocket, you can payback & correct your CIBIL score.



  6. priyanka says:


    I will not be able to pay as I have lost my job. Hence, its been a struggling situation.

    what do you suggest i should do?

  7. Dear Prianka, is it your current financial position is tight that you can not pay or do you not want to pay back at all? Please clarify.



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