When it comes to bad debts, it is estimated that many people don't know what it means. Simply put, the so-called bad debt means that the cardholder has some unused money in his credit card account, and it is still in an unprocessed state. After this state exceeds a certain period of time, banks will be classified as bad debts.

Generally speaking, there are two reasons for bad debts:

The first reason is overpayment.

nowadays, many people are using credit cards. After the repayment date, they are afraid that the repayment amount is not enough, which may cause overdue. Therefore, many people may pay more. For example, the bill that should be paid in a certain bill month is 8 yuan. As a result, he paid 1 yuan to go. The extra 2 yuan belongs to overpayment.

for these excess parts, you can cash them out directly or spend them by credit card. But if you don't use or spend this credit card for a long time after repayment, the overpaid 2 yuan will always be in the bank. After a certain period of time, the overpaid part will become bad debts, but this bad debt has no impact on customers.

in the second case, bad debts caused by overdue credit cards.

The bad debts that people see in the credit report now are basically due to overdue credit cards.

after everyone's credit card is overdue, the bank will adopt different collection methods at different stages. For example, if it is overdue for one month, the bank may mainly notify it by SMS; If it is overdue for one to three months, it shall be collected by telephone or at home; If it is overdue for more than three months, you may receive a court summons from the bank. Or the bank will entrust a third-party collection agency for collection. When it is received, various collection means can be used.

however, if the bank fails to recover the money normally through various collection methods, the money overdue for more than one year may be classified as bad debts by the bank, because credit cards that cannot be repaid for more than one year may be written off by the bank, and then some money will be taken out from the current profits to offset the bad debts.

once it is listed as bad debt, this status will always be displayed in everyone's credit report. This kind of bad debt is more serious than overdue. For example, if you apply for a loan or credit card again, once bad debts appear in your personal credit report, it is basically impossible to pass, because the overdue bad debts can be said to be blacklisted.

after seeing this state of bad debts, many users may not quite understand what bad debts mean. Does it mean that the bank will take everyone to court?

In fact, after the appearance of bad debts, to some extent, the bank has given up the collection, and will not take everyone to court. And judging from the description of your topic, you are more than one year overdue, and you only owe 15, yuan. I don't think the bank wants to take you to court either.

after all, it is very expensive for banks to take their customers to court, and they also have to pay legal fees and attorney fees. If the customer can repay these expenses, the bank will have no loss. However, if the customer is still unable to repay after the bank sues the customer to the court, and all the legal fees and attorney fees are paid by the bank itself, it will not be worth the candle.

So under normal circumstances, if the overdue amount is relatively small, the bank will basically not take everyone to court. If the money collected for half a year to one year cannot be collected, the bank can only recognize it, and then write off the money as bad debts, and the credit card status of the corresponding customer becomes bad debts.

after credit cards are classified as bad debts, does it mean that everyone doesn't have to pay back the money? Of course not!

Setting the bank's credit card status to bad debt only means that the money will not be returned for the time being, so it should be managed in a special status, and the corresponding collection frequency will be reduced. In addition, banks may also sell this bad debt to some asset management companies, and then these asset management companies will collect it themselves.

for this bad debt state, if the principal and interest are not paid off in time, then this state will always exist.

At present, the longest storage time of personal credit report information in China is five years, but these five years are based on your good credit. If your personal credit is in a bad state, such as bad debts or overdue, as long as the money is not paid off, the bad credit will not be automatically eliminated after 5 years. If you don't take the initiative to pay off this bad debt, this state will always exist and will not be eliminated automatically, no matter after 5 or 1 years.

So after bad debts appear, I suggest you deal with them actively and pay off the money in time. From the day you pay off the principal and interest of the money, the bad credit will be eliminated automatically after five years. Related Q&A: What do you mean by bad debts? What is the serious impact of bad debts? Bad debts, also known as "bad debts", refer to accounts receivable that have passed the repayment period, can't contact the cardholder or can't be recovered after being urged, and are in a sluggish state for a long time, which may become bad debts. Simply put, bad debts are accounts that have not been paid off for a long time. In personal credit reporting, bad debts are a more serious performance than overdue. The impact of bad debts; Generally speaking, if there is bad debt, it means that the overdue payment has not been paid off for at least 2 years, and some people think that one bad debt is equal to 5 overdue. Therefore, once the word "bad debts" appears on the credit report, it means that we have no connection with the bank's loan and credit card business. Moreover, if bad debts are not handled, this credit record will follow us for life. Only when the debts are paid off and then the account is cancelled will the bad debt record be eliminated. ; First, the simple and popular understanding of loan (electronic IOU credit loan) is to borrow money with interest. 2. Loan is a form of credit activity in which banks or other financial institutions lend monetary funds at a certain interest rate and must return them. Loans in a broad sense refer to loans, discounts, overdrafts and other lending funds. Banks put the concentrated money and monetary funds out through loans, which can meet the needs of society to expand reproduction and promote economic development. At the same time, banks can also obtain loan interest income and increase their own accumulation. 3. As the leading consumer credit information service enterprise in China, Lirong.com is the only enterprise in China that has launched the MBA student loan project. The bridge student loan provided by Lirong.com to MBA freshmen can help students easily solve the tuition problem. MBA freshmen can apply for low-interest student loans ranging from RMB 1, to RMB 2, on the basis of the admission notice. If the monthly interest rate is even as low as .7%, it is lower than that of bank credit card installment. After entering the school with this bridge-crossing student loan provided by Lirong. com, MBA students can apply to the school for a national student loan with lower interest rate, and then repay the tuition bridge-crossing funds in one lump sum with the national low-interest loan. In this way, as long as the borrower indicates the service before interest when applying, that is, apply for a student loan in this form before entering the school. The best application period is six months. Generally, the national student loan applied for in September will not be approved until February of the following year. In this way, MBA freshmen don't have to worry about the high tuition fees to be paid in one lump sum, and they can easily complete their studies through student loans. 4. Loan amount: After the borrower provides the pledge, mortgage, third-party guarantee recognized by CCB or has certain credit qualification, the bank will verify the corresponding pledge amount, mortgage amount, guarantee amount or credit amount of the borrower. The pledge amount shall not exceed 9% of the face value of the pledge right certificate provided by the borrower; The mortgage amount shall not exceed 7% of the assessed value of the collateral; The credit line and guarantee line are determined according to the credit rating of the borrower. Related questions and answers: What is bad debt?

bad debts refer to accounts receivable that have passed the repayment period, can not be recovered after being urged, and are in a sluggish state for a long time, which may become bad debts. Bad debts are the result of failure to settle accounts in time, and also refer to the property that cannot be collected because the other party does not return it.

The following situations can be regarded as bad debts

1) The borrower and guarantor are declared bankrupt, closed, dissolved or revoked according to law, and their legal person status is terminated, and the financial enterprise fails to recover the creditor's rights after recourse against the borrower and guarantor;

2) The creditor's rights that cannot be recovered after the borrower dies or is declared missing or dead in accordance with the General Principles of the People's Republic of China and the Civil Law of the People's Republic of China, and the financial enterprise pays off its property or inheritance according to law and recovers the guarantor;

3) Creditor's rights that cannot be recovered after the borrower has suffered a major natural disaster or accident, resulting in huge losses and unable to obtain insurance compensation, or after being compensated by insurance, it is really unable to repay part or all of the debts, and the financial enterprise has paid off its property and recovered the guarantor;

4) The creditor's rights that the borrower and the guarantor have completely stopped their business activities although they have not been declared bankrupt, closed down, dissolved or revoked according to law, and their business licenses have been cancelled and revoked by the administrative department for industry and commerce at or above the county level according to law, and the financial enterprise has failed to recover the creditor's rights after recovering the borrower and the guarantor;

5) Creditor's rights that cannot be recovered after the borrower and guarantor have not been declared bankrupt, closed, dissolved or revoked according to law, but their business activities have completely stopped or their whereabouts are unknown, and they have not been registered for industry and commerce or have not participated in the annual industrial and commercial inspection for more than two years in a row;

6) The creditor's rights that the financial enterprise can't recover after recourse if the borrower violates the criminal law and is sanctioned according to law, and his property is insufficient to repay the borrowed debts and there is no other debtor;

7) The creditor's rights that the financial enterprise can't recover after the borrower and the guarantor can't repay the due debts, and the borrower and the guarantor have no property to execute after the court enforces them;

8) After taking legal action against the borrower and the guarantor, the court dismissed the prosecution or ruled to exempt (or partially exempt) the debtor's liability due to reasons such as the disqualification or disappearance of the borrower and the guarantor; Or the creditor's rights that the court refuses to accept or support because of the loss or loss of the statute of limitations of rights such as loan contract and guarantee contract, and the financial enterprise can't recover after recovery;

9) Creditor's rights that cannot be recovered after recovery due to the borrower's failure to repay due debts due to the above-mentioned 1-8 reasons, and the financial enterprise has obtained debt-paying assets according to law, and the debt-paying amount is less than the difference between loan principal and interest;

1) when an advance occurs in opening a letter of credit, handling an acceptance bill, issuing a letter of guarantee, etc., where the applicant and guarantor of the letter of credit cannot repay the advance due to one to nine reasons mentioned above, the financial enterprise cannot recover the advance after recovery;

11) The foreign investment of a financial enterprise with investment rights according to national laws and regulations, and the equity that the financial enterprise cannot recover after liquidation and recovery due to the bankruptcy, closure, dissolution or revocation of the invested enterprise and the termination of its legal personality;

12) after a financial enterprise is approved to dispose of its creditor's rights or equity by market means such as package sale, public auction and transfer, the difference between the sale and transfer price and the book value can be recognized as bad debts;