Once your credit card is overdue, you will face many troubles, big or small.

1. Penalty interest and liquidated damages.

As we all know, the first thing you will face after a credit card is overdue is liquidated damages. Banks do not let cardholders default on their bills for nothing. They not only need to repay the basic interest, but also pay liquidated damages on a monthly basis. Liquidated damages are calculated based on 5% of the total monthly arrears. If interest is added, the total debt will increase by 6.5 per month, which is an additional increase in debt.

2. Collection and prosecution.

Collection is the “necessary step” for every overdue debtor. At the beginning, overdue cardholders will receive collection calls from banks one after another. The general content is to urge overdue cardholders to repay their loans in a timely manner. If the bank's collection fails, the bank will hand over to a third party for collection management. Once entering the collection process of third-party collection, the cardholder will not have any peace of mind.

The collection method of third-party collection is not as easy as bank collection. The first step is to make frantic calls to the cardholder's address book. Later, they went to the cardholder's workplace to collect the money; they mailed a lawyer's letter to threaten the debtor, etc. Some harsh and even illegal means were used to collect the money, which made the cardholder miserable.

If the above methods still don’t work, then the bank will use its last resort—prosecution. Sue the cardholder and go through legal procedures to force the cardholder to repay. If you want to negotiate and mediate with the bank at that time, the bank will not be willing.

Due to the epidemic this year, many cardholders have embarked on the path of overdue payment. Because of the real financial difficulties, no one would be willing to go overdue if it was not really impossible to get rid of the problem. However, this is not a reason for debtors to let things go and give up on themselves.

What needs special attention is that these banks have a prosecution rate of 100% for overdue cardholders

They are: Shanghai Pudong Development Bank, China CITIC Bank, Industrial Bank, China Merchants Bank, Agricultural Bank of China.

If the debtor is unfortunate enough to have one of these banks, there is no need to be nervous. Now the bank has new regulations: overdue cardholders who are really unable to repay their debts can apply for interest-suspended installment repayment after providing relevant certificates to the bank.

After successful negotiation, you can do the following:

1. Stop the increase in penalty interest and liquidated damages;

2. Stop collections on cardholders harassment;

3. Cancel the bank’s prosecution against the cardholder;

4. There is a possibility of reducing part of the penalty interest and liquidated damages;

5. The maximum repayment time is 60 installments.

I believe that overdue debtors do not do so intentionally, but are forced to do so because of financial difficulties. Banks are not emotionless money-collecting machines. They also know that the economy is slow during the epidemic and business is difficult to do. Everyone needs a "chance".