Bad debts refer to receivables that have passed the payment deadline, cannot be recovered after collection, are in a sluggish state for a long time, and may become bad debts.

What behaviors may lead to bad credit card debt?

There are two main types: bad debts caused by overdue repayments, which are general bad debts, and the other is bad debts caused by premium payments. a

General bad debts: If you don’t repay the overdraft on your credit card, bad debts will form over time.

Bad debts on premium payments: Many cardholders don’t understand this. It’s worthwhile because if you don’t use your credit card for a long time, but there is extra money in the card, bad debts will also occur.

After the bad debt is generated, pay off the debt in time (note that you cannot pay a penny more) and cancel the account. After the account is successfully closed, you will find that there will be no overdue accounts in the credit report. This is different from the general method of handling overdue credit cards.

Bad debt is a serious situation. If it is not resolved, it will basically be insulated from bank finance such as loans and credit cards. This record will be on your personal credit record for your entire life. For bad debts, if you do not repay the debt, the bad debts will always be displayed. However, after the debt is paid off, an overdue record will be displayed. This record will be displayed for five consecutive years after the payment is made.