Tips For Getting Credit Settlement From Your Loan Issuing Bank

Tips For Getting Credit Settlement From Your Loan Issuing Bank

by

kathy jhones

There were times when getting a credit card was extremely easy, but paying the dues back to the issuing bank was equally difficult; and this has been discovered by numerous individuals and families by the hard way. For every penny that you owe to the credit card issuing bank or company, the borrower has to payback a much higher sum. Add the high interest rates on credit cards in the details and what the borrowers get is an agonizingly large sum of money which needs to be paid back to the company. To prevent the company or bank from levying high interest rate and a plethora of penalties on late payment, borrowers need to make the due payment on time.

Among the first things checked by banks before providing any assistance to their customers is their credit history. Next, the banks check whether the customer who seeks help from them agrees to their policies or not. It may very well happen that you may find clearing the mountainous debt difficult. So, what would you do in this case? There are many options in front of you, but getting your credit settled in one installment is among the best of them. Credit settlement refers to the practice of paying all the dues in a single installment. Though this may seem to be a lucrative option but the final decision in this regard is taken by the loan issuing bank. To avail this service, the borrower needs to contact his or her bank and let the authorities know of the whole situation.

To settle the outstanding credit, a one time offer is made by the banks by lowering the loan amount from the total outstanding amount to such a level that can be managed easily by the borrower while ensuring that the amount is high enough for the bank to make a decent profit from it. The bank makes quite a lot of profit while the customer feels happy by paying off the money in a single shot and gets his or her dues cleared. The banks generally cut the rates of interest to a mutually agreeable level. It is worth mentioning here that when a customer fails to make the required payment on time, the banks raise the interest rate and keep on doing so till the payment is not received from the borrower. Such interest rates result in a healthy profit for the bank along with the original sum of loan.

There are a number of individuals around us who wish to terminate the continuous harassment at the hands of representatives of the banks for making the payment along with any other contact with the loan issuing bank. This is only possible by paying the complete pending amount and get of the never ending debt trap. The amount payable in the single installment is decided by the loan issuing bank, but is generally less than 70% of the total credit. Borrowers can make use of this extremely beneficial service to get rid of their debts.

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