Bad debts are a serious breach of contract. If there are bad debts in personal credit information, it means that some businesses have passed the repayment period, and whether they can't contact themselves or users refuse to perform their responsibilities, they may be identified as bad debts by banks for a long time. In short, bad debts are the result of not being settled in time, and also refer to the property that cannot be recovered because the other party does not return it. Mainly because the credit card overdraft is overdue for a long time, and the circumstances of overdue repayment are more serious, and it may even be considered as old-fashioned, which will also affect future mortgage and car loans. In short, bad debts have a great impact on your life after they are formed.

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Consequences and treatment of bad debts:

1, bad debts belong to a very serious overdue situation in the credit report, and the severity is far from being comparable to that of ordinary overdue. As long as the word bad debt appears in your credit report, it means that you will be completely cut off from banking business, such as applying for credit cards or loans. No matter what you think, it's in vain. If you don't deal with it, this bad debt will follow you all your life. Even if some bad debts are paid off, the records on the credit report will still be retained.

2. General bad debt treatment: First of all, you must pay off the arrears, and be careful not to pay a penny more. After paying off the debt, we must close the account. Unlike overdue credit cards, bad debts will not be eliminated until they are cancelled. As for whether there will be no bad debts in the credit record after account cancellation, it depends. Some banks will update your credit record immediately after you close your account, and even put your account into an unexpired account. However, some banks are very bad, even if they close their accounts, they still have bad debts, and the handling methods have been negotiated many times. Really can't handle objections!

3. Bad debts caused by overpayment, treatment methods, extraction of overpayment and cancellation of accounts. Under special circumstances, it is relatively simple to deal with the bad debts caused by the annual fee of the second card, and the account can be cancelled after paying off the arrears. In both cases, banks will generally take active measures to deal with bad debts.

4. The good thing about bad debts is that there is no additional penalty interest on the arrears. In other words, if you have bad debts of 1000, you only need to repay 1000, and no new penalty interest will be generated.