This is a normal collection method. At the beginning, the bank will notify you of repayment by phone, letter, etc., and then it will call you for payment. If you still do not repay, the bank will not follow you again. Instead, it will be directly handed over to an outsourced agency, such as a commercial account management company or a law firm, for recovery. They will definitely threaten you with prosecution if you don't, so as to force you to repay the loan. However, from a law firm It will take a certain amount of time to recover from the matter and file a lawsuit in court. After all, going to court to file a lawsuit also costs money. If you can’t afford it, don’t spend it. You only go to the court to file a lawsuit when you have no other choice. Of course, going to court to file a lawsuit is already a step. It’s very serious. If you owe more than 10,000 yuan, you will still have to go to jail if it is overdue. Moreover, an extension will have a serious impact on your future mortgage loan applications, so if you can’t pay back the full amount, you should pay the minimum amount first.

Consequences of overdue credit card

1. Liquidated damages, usually 5% of the unpaid portion of the minimum repayment amount.

2. The interest is high, and the interest is compounded. The interest rate is very scary when the debt is large.

3. Overdue credit records will be stained, resulting in the inability to handle financial needs such as house purchases and loans within the next two years.

4. If the payment is overdue for more than 3 months, and the amount exceeds RMB 10,000, and the bank has failed to pay multiple reminders, you will not only have to bear the repayment, but may also bear criminal liability.

Cancellation status

Canceling a credit card account is something you must do if you no longer intend to use the credit card. If you do not cancel the account, the bank will charge the annual fee for the credit card on an annual basis.

As long as there is no overdraft on the card, you can apply for account cancellation at any time.

If the card has not expired, you need to apply first and go to the bank to cancel the account after a certain number of days; if the card has expired and the account balance is zero, you can go directly to the designated bank outlet to cancel the account. Account procedures. When canceling an account, you should bring the original valid identity document and card. If it is inconvenient for you to go through the account cancellation procedures, someone else can do it for you. The agent must hold a power of attorney written by the principal (in person) and bring the original valid identity document to handle the account cancellation business.

If your card has not expired when canceling a credit card account, some banks stipulate that you need to go to a designated outlet to handle the card collection business, and then go through the formal account cancellation procedures after a certain period of time (up to 30 days) . This is mainly because if the cardholder has made a manual card pressing transaction before canceling the account, the cardholder will have canceled the account before the merchant has submitted the card pressing form to the bank for entry into the account, and the bank will not be able to clear the account normally. ; On the other hand, if the cardholder spends money or withdraws cash overseas, it may take a few days to settle the account. If the account is closed immediately, it will also affect the bank's normal liquidation.

Disadvantages of Credit Cards

Credit cards can easily lead to over-consumption. This is a common problem among people who are in credit card debt. It is painful to swipe a card without paying money, so they spend even more uncontrollably by swiping the card.

The annual interest rate on credit cards is as high as 18%, which is really usury and can make borrowers lose money quickly.

Credit card debt causes mental stress. Some card slaves report that they are often afraid to open their mailbox or mail.

With bad credit, the cost of borrowing money will be higher, and it may even be impossible to borrow money.

Credit cards provide a choice between using debt to finance debt and drinking poison to quench thirst, causing debt to get out of control.