In the process of using credit cards, there is a term that arises due to overdue debt, that is, bad debts. So how do bad debts arise?

In fact, bad debts will not only occur due to arrears, but also due to excessive savings or repayments. For example, your credit card balance bill is 1,000 yuan, but when you make a refund for shopping, the amount will be returned to the credit card account. If the bill is paid off, the amount will be offset.

Assuming that the refund amount is 100 yuan, then after paying the bill, you may only need to pay back 900 yuan, but you have paid back 1,000 yuan. This 100 yuan is an overpayment. You can choose to withdraw it or continue to spend it. In fact, it has no impact. But if you stop using your credit card from now on, the money will become bad debt within a certain period of time. However, such bad debts have no impact on users. After all, you just paid more money.

Today we are talking about bad debts due to default on payments. Once your credit card expires, the bank will naturally use various collection methods, such as text messages, phone calls, court summons, entrusting third parties to collect, etc. If all various collection methods fail to allow you to repay. Therefore, after the debt exceeds one year, it will be included in the bad debts, and the bank can choose to write it off by itself and offset it with its own profits.