GOING FOR SETTLEMENT OF HDFC CREDIT CARD

You should talk with them and get it down to 2 lakh, they will likely go for it. Then take that offer and remember to get a final receipt and NOC in writing from them.

This gives you instant “savings” of 50,000 on base spends and 1 lakh 50,000 including taxes and fees right now if they don’t buckle down from 2.3 lakh, and if you are able to get them to come down to 2 lakh, that makes it 80,000 net savings on base spends and 1 lakh 80,000 on spends with interest and fees.

This is amazing savings. And try not to get another credit card.

phoenix1386 wrote:

You should talk it down to 2 lakh, they will go for it. Then take it. Instant “savings” of 50,000 on base spends and 1 lakh 50,000 including taxes and fees right now, and if you are able to get them to come down to 2 lakh, that makes it 80,000 net savings on base spends and 1 lakh 80,000 on spends with interest and fees.

This is good. And try not to get another credit card.

I had communicated for 2 lakhs for settlement but they are not agreeing on it.

Some of my friends are saying it’s too much it should be 1.5 lakhs

I was pursuing for 2 lakhs and bank said it’s not possible 

manas2913167 wrote:

I had communicated for 2 lakhs for settlement but they are not agreeing on it.

Some of my friends are saying it’s too much it should be 1.5 lakhs

I was pursuing for 2 lakhs and they said it’s not possible

They will do it during month end to complete their monthly target, but make sure you have a proper confirmation or else they consider it as a payment. It has happened with someone long time ago

manas2913167 wrote:

I had communicated for 2 lakhs for settlement but they are not agreeing on it.

Some of my friends are saying it’s too much it should be 1.5 lakhs

I was pursuing for 2 lakhs and they said it’s not possible

Just wait and watch, they will come down to the price you friend is suggesting. It seems he is experienced in such matters. Consult with him or try and make him talk with the settlement people the next time they call you/ knock your door.

Alternatively, you can tell them you want to pay 1.5 lakh only and you can pay immediately if they want to take it, or they can do whatever they want and extend their hassles. Roz roz bike chala ke aana will soon prove costlier to them anyway. Try and talk to their seniors if possible.

It is not as if they are demanding that you pay what you spent (the rightful due) anyway, right? So haggle over the final payable as hard as you can and don’t just hand over your hard-earned money to the settlement people.

I don’t get it… You spent 2.8L on your CC; then didn’t pay the bills on time, so the interest got stacked and now it’s showing as 3.8L as bill amount. Now banks offering you to just pay 2.3L and settle it off !
@guest_999 What am I missing here ? How can a bank settle for an amount lesser than the principal spend itself :O

As @myfungang829 suggested, wait till month-end and bring them down to their knees. They will settle at your price. Just remain firm in your intentions. And as suggested, ensure that they register it as settlement and not as payment. Although I am reasonably sure they would have closed your card by now, so it would be settlement only.

BlueFlash wrote:

I don’t get it… You spent 2.8L on your CC; then didn’t pay the bills on time, so the interest got stacked and now it’s showing as 3.8L as bill amount. Now banks offering you to just pay 2.3L and settle it off !
@guest_999 What am I missing here ? How can a bank settle for an amount lesser than the principal spend itself :O

Cutting their losses, that’s it. It is a loss to them, so any recovery is helping the net loss, that’s all there is to it.

I didn’t get this
Not credit card user
2.8 used and 2.3 settlement means?

sanketpero wrote:

I didn’t get this
Not credit card user
2.8 used and 2.3 settlement means?

+1

sanketpero wrote:

I didn’t get this
Not credit card user
2.8 used and 2.3 settlement means?

The process:

1. Poster spent 2.8 lakh on card.
2. For whatever reason/ intention, poster has not paid on time
3. Interest and fees are raking up and the amount was apparently stopped at 3.8 lakh
4. Bank now wants to cut their losses so looking to recover whatever they can from poster.

This is a great technique to “save” a sizeable amount of money as savings on spends if you do not have Infinia credit card. If my math is right, saving 50,000 on 2.8 lakh spends means 17.85% reward rate. Unmatched.

I do advise anyone reading this and naive enough to think of using the technique with their credit cards, to not use this technique. Please don’t. It will ruin your credit score for a long time.

phoenix1386 wrote:

Cutting their losses, that’s it. It is a loss to them, so any recovery is helping the net loss, that’s all there is to it.

It’s a minor loss of bank but major loss of OP coz in cibil he’ll be reported as Defaulter hence in future he won’t get any loan from any institutions…

Baaap wrote:

It’s a minor loss of bank but major loss of OP coz in cibil he’ll be reported as Defaulter hence in future he won’t get any loan from any institutions…

And now with new rules (that are currently on hold), he will likely have difficulty opening a current account in a bank as well. Hum Nirav/ Lalit Modi ya Choksi/ Mallya ya Ruchi Soya to hain nahi ki SBI pair dho ke piyega humaare.

Baaap wrote:

It’s a minor loss of bank but major loss of OP coz in cibil he’ll be reported as Defaulter hence in future he won’t get any loan from any institutions…

At present my cibil is 728, can i think of any improvement after the settlement or it will downgrade

manas2913167 wrote:

At present my cibil is 728, can i think of any improvement after the settlement or it will downgrade

Wait for a month or two, then watch what happens to it. You will likely have to take a secured credit card to get your score back up, and even then, you will likely face difficulty for a few years ahead in case you want any unsecured loan or credit card.

Thanks for your suggestions @phoenix1386

One doubt

Now bank asked me to pay some amount before 15 aug and rest of the amount by 25 aug, they also told me that if I don’t go for settlement this month the amount will increase next month and so on.

Shall I pay or take chance for further reduction by not paying

manas2913167 wrote:

Thanks for your suggestions @phoenix1386

One doubt

Now bank asked me to pay some amount before 15 aug and rest of the amount by 25 aug, they also told me that if I don’t go for settlement this month the amount will increase next month and so on.

Shall I pay or take chance for further reduction by not paying

Only go for one-time payment and FULL SETTLEMENT. Do not go into paying in instalments. That would be my recommendation.

About still deciding between paying now or taking a chance… How have you felt lately, luck-wise? If you feel you are up for it, you may try taking a chance and see what happens.

What does your friend have to say about this?

phoenix1386 wrote:

Only go for one-time payment and FULL SETTLEMENT. Do not go into paying in instalments. That would be my recommendation.

About deciding between paying now or taking a chance… How have you felt lately, luck-wise? If you feel you are up for it, you can try taking a chance. Again, not my recommendation, but depends on your mood and feeling.

What does your friend have to say about this?

Friends are saying you delay it, they will come down anyhow

I am unable to take a decision right now but thanks for your guidance

I will reach to a decision.

manas2913167 wrote:

Friends are saying you delay it, they will come down anyhow

I am unable to take a decision right now but thanks for your guidance

I will reach to a decision.

Listen, Manas.

Those people you are calling your friends, they are not your friends.

Please just pay up as much as you can, right now. Really, as much as you can. Why? Because paying closer to the amount of default will improve your chances at recovery. And never ever get into the revolving credit debt trap again.

Enough fooling around, just pay whatever you can, and if you can pay the actual amount you spent (2.8 lakh) just pay that amount. This will also hopefully ensure that your CIBIL does not reflect as badly on you as it will, the lower you pay. The right thing to do here is to ask them to waive all fees and tell them that you will pay 2.8 lakh in full if they waive the interest and fees components. That way, though it might still go under SETTLED, it would likely not look as bad, saving you a lot of trouble in future. Talk with them and tell them you will pay full 2.8 lakh that you actually spent, provided they do not destroy your CIBIL for playing games with them. Talk to them, that is your only hope. That is, if you care for this. If you did this with full intention of doing this, then yes, do whatever you think is best for you.

My recommendation would only be to not fool around anymore with this, talk with them to resolve this in a way that does not destroy your CIBIL, pay the rightful due that you did spend, and finally, do not call anybody who promotes bad financial habits as a friend of yours.

manas2913167 wrote:

At present my cibil is 728, can i think of any improvement after the settlement or it will downgrade

at least 5-6 years no banker will even look at you, in CIBIL it will be written as “settled” or “adjusted amount paid”… and to remove this u need to pay back another settlement fees
You can see these details in your letter, I happened to see such letter from SBI 60K dues for 10Kx3EMI settlement

O boy! I hope you become financially stable again. In no way this can be called a savings. Also I hope you have no dependants, who are taking guidance from you.

Best of luck in Life bro.

phoenix1386 wrote:

The process:

1. Poster spent 2.8 lakh on card.
2. For whatever reason/ intention, poster has not paid on time
3. Interest and fees are racking up and the amount was apparently stopped at 3.8 lakh
4. Bank now wants to cut their losses so looking to recover whatever they can from poster.

This is a great technique to save a sizeable amount of money as savings on spends if you do not have Infinia credit card. If my math is right, saving 50,000 on 2.8 lakh spends means 17.85% reward rate. Unmatched.

I do advise anyone reading this and naive enough to think of using the technique with their credit cards, to not use this technique. Please don’t. It will ruin your credit score for a long time.

Now I get it…This guy is at a whole different level XD
@manas2913167 Bhai, why spend 2.8L when you can’t even pay back ? Time to think on your life choices !!!

BlueFlash wrote:

This guy is at a whole different level

And here I’m silently watching this thread from the beginning.

BlueFlash wrote:

Now I get it…This guy is at a whole different level XD
@manas2913167 Bhai, why spend 2.8L when you can’t even pay back ? Time to think on your life choices !!!

Wen u need loan in future he will be charged higher interest rate…. So it’s like putting money in ur front pocket from someone then giving back money from all pockets

Karma matters…. Be it desidime or real world

P. S. : dis is Google knowledge… Not sure how it works in practical cases

24karat wrote:

Wen u need loan in future he will be charged higher interest rate…. So it’s like putting money in ur front pocket from someone then giving back money from all pockets

P. S. : dis is Google knowledge… Not sure how it works in practical cases

Forget interest rate, he won’t be given any loan without mortgage in near to far future.

@manas2913167 why are you defaulting, is there any strong reason?
Also, i would like to know if you dont agree to settle down this and you refused to pay any single penny then what would be the consequences (apart from cibil thing) ,can they take any legal actions?

andromeda wrote:

And here I’m silently watching this thread from the beginning.

+1

kartikxxx wrote:

@manas2913167 why are you defaulting, is there any strong reason?
Also, i would like to know if you dont agree to settle down this and you refused to pay any single penny then what would be the consequences (apart from cibil thing) ,can they take any legal actions?

I am also curious to know… in general, those settlement guys do rakita rakita infront of house right !!

phoenix1386 wrote:

As @myfungang829 suggested, wait till month-end and bring them down to their knees. They will settle at your price. Just remain firm in your intentions. And as suggested, ensure that they register it as settlement and not as payment. Although I am reasonably sure they would have closed your card by now, so it would be settlement only.

my suggestion is based on this thread, my morals say that u need to pay what you have spent….. this settlement is not profit, its a actually loss to the OP itself which he will come to know in few months, inform of cibil score, and in few years ,in form of rejection of credit cards or high rate of interest for home loans etc.,

24karat wrote:

Wen u need loan in future he will be charged higher interest rate…. So it’s like putting money in ur front pocket from someone then giving back money from all pockets

P. S. : dis is Google knowledge… Not sure how it works in practical cases

Home loans rates are high for defaulters.