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Credit Card Settlement: How to calculate, negotiate, and close the deal?

Don't cry, just cut your credit card into pieces to live happily

Don't cry, just cut your credit card into pieces to live happily

Get out of your credit card debt. Calculate, negotiate, validate, and close the deal.

Get out of your credit card debt. Calculate, negotiate, validate, and close the deal.

If you are overburdened with your longstanding credit card debt, fed up of receiving harassing phone calls by your credit card issuing bank, want to get rid of debt collectors who threaten you at your home and office on a regular basis, and don’t know how to negotiate with bank authorities, then this article is for you. As you know that millions of people around the world are affected by credit cards due to their high interest rates that are beyond limits. Most of them are aware that credit card debt is the worst type of debt they have ever experienced but then also they keep on using credit cards because it is an easy way to buy any really expensive thing at once and when they have credit cards in their pockets, they feel like kings and it does not take them so much time to spend all the balance they have in their credit card, sometimes above the limits. When the limit gets exhausted and there is no money left to revolve, then the person finds out the problems that happen after using credit cards. Some people are able to pay the minimum amount due and they keep on paying it every month but then also their credit card debt keeps on increasing instead of decreasing and this is the primary reason why a person then decides to settle a credit card by paying off all the debt at once, but it is interesting to note that this is not so easy because the amount a person has in his/her pocket to pay in lump sum does not match the balance to be paid for settling the card. For example a person has got 1500 dollars to settle the card but the balance is more than 3000 dollars than what a person will do. Below I have listed some steps to be taken into account before settling your card. I have utilized these steps personally and they include calculating the debt and payments, negotiating the settlement, and finalizing or closing the deal.

This old man with sexy blonde has thrown away his credit cards. Look how happy he is after getting out of debts.

This old man with sexy blonde has thrown away his credit cards. Look how happy he is after getting out of debts.

How to negotiate debt?

Step by step instructions on how to calculate and negotiate credit card settlement:

  1. Call up your bank’s customer care and ask them to send all the monthly statements including all the payments you have done up until now on your credit card via email or post. In my case, I got them via email.
  2. After receiving the payment details, calculate how much you have paid first, like in my case my credit card’s limit was 85000 INR and I had already paid 67400 which was correctly reflected in my credit card statements. Now calculate how much you have really spent and how much interest the bank has charged and the what is the total outstanding according to bank. In my case, I had spent 87000 INR and the total outstanding was 111000 INR according to bank.
  3. Now minus the amount you have paid out of total outstanding according to bank. For example in my case, it was 87000 minus 67400 is equal to 43600. Now calculate what is the interest? Do you think the interest charged is legible? Do you have this much money to pay? Yes or no, it’s according to your wishes.
  4. Now in this step I will share my personal experience what I did. I stopped making all the payments for 3 months and whenever there was a call from the bank I kept on saying them that I have spent 87000 INR and already paid 67400. The balance amount is 19600 and the valid interest should be 9000 to 10000 INR. I told them that I can only pay 25000 and that also only once. First they said you have to pay total 111000, then only 95000, then only 75000, then 50000, then 35000 and when came to this figure, I tried to negotiate with them some and ended up at 29000. So we closed the deal at 29000 and I agreed to pay 29000 INR to the bank if the bank gives me the full and final settlement letter.
Pay off your credit card debt and be happy.

Pay off your credit card debt and be happy.

How to validate and authenticate credit card settlement letter?

But this does not end here. Because many credit card debt collectors generate fake debt settlement letters to make you fool, so read some important points below when settling your card by checking the authenticity and validity of your settlement letter:

  • Make a deal with the bank executive on phone and arrange for a place to meet to settle the due.
  • Never pay anything in cash when going for a settlement and don't give check also because then you will not receive the settlement letter in your hands and there are more chances of you being cheated by the bank executives.
  • Create a demand draft from a bank for the same amount. You have to pay very minimum for making that draft. Don't worry about that small money. Paying your credit card debt in form of DD ensures the bank authorities also that the payment is done in real time and they have to issue a settlement letter at the same time because DD is just like cash. Keep a photocopy of your demand draft.
  • If the bank executive says that please make the payment first and then we will give you the letter. You have to tell them no, I cannot do that. Keep insisting on getting the settlement letter at the same time you are giving the money in form of DD. Take the settlement letter in your possession first, check its authenticity, and then give the demand draft in the agent's hand.
  • If the bank employee gives you the settlement letter than also check its validity by calling up that bank’s customer care and ask them if there is any settlement letter generated from your account and if the bank's customer care at phone says yes, then also confirm the reference number written on the settlement letter with the customer care on phone and double check all the details for example amount settled on your credit card, date generated of your settlement letter, etc.

Settle Credit Card Debt Easily without Filing Bankruptcy

So above was my personal experience on how to settle a credit card with proper calculation, negotiation, validation, and finalization of deal. These steps have helped me to pay off my debt and close my credit card. After this happened with me, I closed all my 5 other credit cards of different banks and now I am just doing cash transactions. I use debit cards for online shopping. I use paypal for making payments and receiving money. I have burned and thrown all my credit cards. I am really tension free and happy than I was ever.

Also read my personal story in full: Harassment on phone by ICICI bank DSA

Happy man after paying credit card debt

Happy man after paying credit card debt

What Happens If I Don't Pay Off My Credit Card Debt

I cut my credit card into pieces

I cut my credit card into pieces


  1. It is important to note that credit card settlement and any other type of debt settlement depends on case to case and person to person.
  2. It is highly advised to consult your personal lawyer before initiating any settlement deal.
  3. Also you should keep in mind that credit card settlement done below what the bank requires can lead to credit loss.
  4. Credit loss can result in your not getting approved for loans in the future.

The steps mentioned above are taken by the author himself and are not highly recommended, so it depends on your personal decision whether you want to take this route or not.


Aman Kumar Pandey on December 20, 2019:

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I had my hdfc credit card and my due amount is 62,000 what will be my settelment amount accordibg to that.and how to do the stellement for the same

Simpu on July 25, 2019:

I have total outstanding of Rs.80,716.66 now My principal amount was 52769 on jul 2017 in HDFC credit card. I want to do settlement, what is the right amount for settlement ?

Rajesh on February 11, 2019:

Hi I have total outstanding of 28000 My HDFC credit card I want do settlement wht is right amount

Pranith on June 22, 2018:

I have total outstanding of Rs.59,700 in HDFC credit card. I want to do settlement, what is the right amount for settlement ?

Amarjeet Kumar on April 29, 2018:

I have total outstanding of Rs.42,000 in HDFC credit card. I want to do settlement, what is the right amount for settlement ?

M.S.Bhanuprakash on February 21, 2018:

I am M.S.Bhanuprakash and I am 68. I have ICICI credit card with no. 5241 9330 2373 7000. Last month my outstanding was Rs. 70000/- and I have paid Rs. 45000/- this month. The present outstanding is Rs. 28868/-. I want to clear the full dues but I would like to get some waive off on interest dues. Who will help me in this matter.

Amit Gaur on February 10, 2018:

I have total outstanding of Rs.40,000 in HDFC credit card. I want to do settlement, what is the right amount for settlement ?

PRIYA PATKAR on February 05, 2018:

I have total outstanding of Rs. 1,84,000 in HDFC credit card. I want to do settlement, what is the right amount for settlement ?

Archana gurung on July 20, 2017:

Hi. This site have given me a lot of knowledge regarding how to do settlement with the bank or the third party for my credit card dues...i am also being victim of axis bank credit card.different people are calling me up and saying different credit dues .Now i know how to deal with this people....thanks a lot for ur suggestions..was of great help.

Vishwas Maid on July 11, 2017:


Last six month requesting all credit card representative to collect money of last settlement cheque amount which bounce by my serious accidant in express hiway but no body responding

anil on June 10, 2017:

i use my cc hdfc 60000 now i give minimum 3000 every months last 4 year how i can do for clear all

amitbhatia on July 29, 2015:

I have hdfc bank craditcard bank has some duse on me but I pay min amt every month I gave 27000in my account that was took by bank and now I am suffering from cancer and my treatment had break

md on June 16, 2015:

whome to contact to make final settlement at CITIBANK Bangalore, any phone number or email address please help me

raja on March 17, 2014:

hi everybody

Raj Ridhi on March 17, 2014:

Hello all,

, i owe about 5 lakhs to citi credit card, iam not payin from past 10 months, and i stopped payment because i lost my job.....i don't have any source to pay amount.....if citi files a case in court ...what judgment can be given against me? can they lein on my real property(house)?

shuklarenu on March 04, 2014:

@Mohit- Can you please explain more ,what u mean by illegality of the letters related to card outstanding.

mohit on March 03, 2014:

All legal letter from banks to recover card outstanding amount is illegal

shuklarenu on December 18, 2013:

Hi soni, I am facing a very difficult situation related to my credit card settlements...stumbled on ur post while trying to find a solution for the issue..I would like to have a small personal chat with you if u would agree..I will be highly thankful..Please reply..please

Garry on December 18, 2013:

Great article ..

Raj on November 05, 2013:

My loan was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review

amitesh on October 06, 2013:

my banks says my account is LEAN now and they never gave me any notification about this,i partly depositing amount and it i going up like anything,they too are saying now settlement cant be done i have to pay full please

vinod on September 04, 2013:

sir i already paid more than two year my credit amount amount around 3200 rs per month /-now i paid mu cc limited 50000

Yogender Sharma on April 16, 2013:

Hi everyone, first of all thanks a ton for providing all this wonderful informaiton over here I am sure there are hundreds of people looking for this kind of help and guidance....

I am also facing a similar problem on which I would like to seek some guidance from all such people who had come acrossed this kind of situation or knows how to handle this....

With all due repect I would like to put my concern in front of you hoping that you will definitely resolve my query and guide me. i had taken a ICICI Bank credit card way back in 2007-08 and used it till 2009-10 after that when i fed up with their interest rates and paying other thigns like service tax, late payment charges, interest charges, overlimit fees etc... i stopped making payments as i was not able to afford an amount of 10,000 every month... there was some communication happened in the early phase with the bank regarding the settlement of this card but i was not aware of this so didn't initiated this.... later on when i got to know that i can settle this card with an amount i was ready to speak to them but they offered a high amount which was not feasble for me so i declined.... now after years they again calling me and start threatening me for the concequences if i am not ready to settle this with an amount of Rs. 1 lakh as according to them the outstanding amount is over 2 lakhs even the bank represetatives start visiting my residence area and keep calling in loud voice even start spreadign rumour to my neighbours that i am a theif and not ready to pay bank amount.... but sir my financial conditions are not too good that i can afford lakh rupees and pay them.... more oever as per my knowledge i believe that it should not be that amount due on my behalf as when i stopped making payments how can bank still charge me for all the interests ( just to give you an example during the year 2009-2012 starting from Oct 2009 to May 2012 i had used the card Rs. 71,216.22 I made payments for Rs. 87,345.32, paid service tax of Rs. 9,921.63 and paid interest of Rs. 84,212.05) you can easily understand how much i had paid......

Now I would like you to please guide me is there any way where i can file a complaint or go leagal against them as paying 1 laks rupees is beyond my imaginations if its a question of 10-12,000 then i would have settled this way back.... Please guide me what should i do now to settle all this nonsense ....

Thanks in advance

Yogender Sharma

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Rajinder Soni (author) from New Delhi, India on March 04, 2013:

Hi Vikki,

Just go ahead and visit this blog of mine:

And follow the steps for all your cc settlements

Vikash Mishra on February 28, 2013:

I have taken 4-5 banks credit card (ICICI , DUETCHE, BARKLAY, HSBC) in the 2006 and 2007. when i was doing my part time job while doing my mba. i have used 50-75k amount from all my cards. later i was not able to pay the amount , because my income was less . now i want to settle my card amount and removed my name from cibil.

please help me, how to process, whom to contact ? which should not be harm for me..

asif on November 28, 2012:

This is very useful page. I request you to share this page so that many more Indians who are facing Creditcard problems will get this info. Thanks a lot.

Jyoti Prakash on November 06, 2012:

I also wanted to do a debt settlement for one of my credit cards. But, will there be a problem for loan approvals in future due to this settlement? And, if any problems happened in your case, then please share. My mail id is

Ravi Jain on November 06, 2012:

Make you you don't give them copy of DD, It happen to my friend the agent ask for photo copy of DD. Then he went to Police station filed Lost DD and gave to to Bank, Asking bank to issue fresh one at nominal cost.

am on November 01, 2012:

i am in a process of settling my debt one of the bank offered me settlement in instalments now i checked with their customer care and personal loan dept about the settlement letter that i was issued and i am making subsequent payment as per the agreement they say they are in receipt of the payment but are unaware of the settlement letter being issued , and that the collection knows it as this is not listed in their system . so i don't know whom to believe and what shud i do ? pls help

Monica. on October 03, 2012:

Can some one help me on this. I have standard chartered credit card in 2007 with a 8000 INR credit limit. I have spent 75000 and immediately paid 65000. In one month they have charged 5000 interest on whole amount even though i paid 65000 on time. I ve called customer care and asked to cancel the interest they haven't agreed so I paid the remaining 10000 INR also and stopped using credit card. I have paid the full amount 75000 INR what i spent immeditely n stop using the credit card. Recently(In 2012 after 5 years) i got a mail from standard chartered bank that i have 49000 INR outstanding amount. all this 49000 INR is interest not even a single rupee principle amount. I don't know what to do can some one help me on this. They sent a notice in Feb 2012 that they will take the action in court.and after that i don't have any communication from them. I am bit worried. It would guide me in handling this situation.

Inder on September 25, 2012:

I only have spent 29000 and collector said u need to pay 24000 for settlement. I told him that i lost my Job and i can start paying once i get new job. He still did not understand. Please suggest what i can do. I told him i can pay him off 10,0000 rs and finish the deal.

MANISH KULSHRESTHA on July 22, 2012:

hi,want to know about icici bank card. It was settled and i want to check is it reflecting in my cibil rating and at icici bank records also

Rajinder Soni (author) from New Delhi, India on July 20, 2012:

It's my pleasure Monica. Always ready to help.

monicamelendez from Salt Lake City on July 19, 2012:

I really wish that I would have had this advice when I was trying to pay off my credit card debt. I was of course way over my limits without the money to pay them off. If I had had this information it wouldn't have taken forever. Thank you

DJ on June 23, 2012:


i have a credit card due around 108,000/- INR. i don't have job since last 10 months. now i am unable to pay minimum due also. but want to way out from this debt trap. i need a settlement but i can hardly arrange 35 to 40k Rs. i write a letter to my bank. after one meeting and few phone call her representative ask me to pay 80k in 8 EMI. but i am not able to pay this huge amount. i need to ask following thing.

1- what is the way to bring them down as low as possible ?

2- how much rebate i can expect?

3- what can i do if they refuse settlement offer. because i don't have money. i don't want declare my self bankrupt and any case want to pay debt and settlement.

4- what warts bank can do with me in my case? because i am going to anywhere..i want to pay them.. but because of no money i want settlement. PLease guide me



sunny on February 02, 2012:

wanted to say thankyou everyone.

i had a hdfc credit card i did not pay anything last 2 years, now they started making calls to me and people in my office, using their tricks to get money for me. as per there statement they where asking me 110000/- I asked them give me my details how much i have used and how much i have paid and how much charges they have charged me for interest and penalty etc. They were not able to answer me, they said it is not available they can give for last six months etc etc i kept on insisting for my statement. I said i am not going to pay anything without any details. so the amount from 110000/- came down to 56000/-. i said maximum i can pay 10000/- i have already paid them more then the amount i have used by my card. After discussion for 10 minutes i increased my amount from 10000/- to 15000/- that the maximum i can pay in 3 installments. They said it is not possible to get a settlement in Rs 15000/- i kept pressuring them that i can only give 15000/- 15000/- and 15000/-. Now they changed the amount from 56000/- to 26000/- in two installment. I said i don't get that much salary if i give you 26000/-. Madam you can do it in 15000/- i know you can. you are just trying to get the maximum amount from me try it i will give you 15000/- and will close the account. Now she said she will call me again after speaking to here senior.

Ok that was long but i feel i can get out of this in Rs 15000/-

Thankyou everyone for sharing your experience and you guidance

E Padro from United States on January 31, 2012:

Great hub! Thank you for taking the time to write it, so many people are trapped with high amount of debts and your hub provides ideas to deal with them.

Arun Thiraviam on January 02, 2012:


My name is Arun Thiraviam from Mumbai & and was holding a STAN CHART CC NO. 4219 0743 8085 4300 and for last 4 - 5 days getting many calls from DSA of STANDARD CHARTERED BANK(022-61369536 & 022-42131686) to pay the dues from 2001 Rs. 14.5 lacs (including interest) sooner and also sent a legal notice to me.

The Stan chart C.C. last used in the year 2001 and due to finanical conditional and not having job for 2-3 years I was not able to pay dues in time.

Sir, I also ready to pay whatever the original spending amount due to bank.

Mr. Mithun asking me to pay the amount soon or otherwise he know how to recover the amount. He also threaten to 2 persons to recover the amount. I feel scared they should not harm the my family.

Please Sir, Help me out soon.

Arun Thiraviam

mansukhlal on November 17, 2011:

dear brother let me tell u one truth that 80% of bank recovery process in India are illegal.A credit card is unsecured LOAN as per RBI guidelines and under no circumstance any criminal or civil suit can be file for amount unpaid. If a recovery agent haress u just call the police.The bank advocate will only send u DEMAND NOTICE but a case will not be admitted in any court

Dev on November 16, 2011:

Hi Soni

I have settled my credit card with the issuer banks but i am still in Defaulters list in CIBIL. Since the settlement was lower than the original amount, is it possible to get rid of CIBIL? I have all the proofs of settlements. I called my bank and they says if I want my name to be removed from CIBIL, i need to pay entire amount. Is it true? Any information on this please?



Kumar on November 16, 2011:


Can we trust the companies like Debt Docotor or Edvin for Credit Card and Personle Loan settelements.


niobiums on November 12, 2011:

i was so afraid till now, but now i am quite ok and will try sorting the issue out for sure....

many thanks Soni for showing hope

Srinivas on November 08, 2011:

Hi Soni

Thanks a ton & it will be very helpful for lot of people

kaushik on November 08, 2011:

hi soni, i had a detsche bank credit card. i was working part time during my graduation and used all the money on the card. Although it was Rs.15000 only but it was a couple of years back and now the total has come up to more than 1 lac. I dnt earn so much to pay the debt. Can you please help me as to how I should proceed

chetan soni on October 11, 2011:

i have made settlement with icici crediy card in FEB 2009. i also have their full and final settlement letter.The payment was made through my saving acc in icici bank.The total settlement amt was RS 30000 .now the bank agents have started calling me again .i showed them the settlement letter but they told me it was they r threatning me to take legal action if i don't pay RS115000.they have also started calling my friends and neighbours and also disturbing them.kindll advice what i should do?

imtiyaz on September 28, 2011:

thanks you so much for sharing these usful tips to public i am glad and hope i will sooner sooner finalise the deal with icici bank any thanks again

jd on September 15, 2011:

thanku so much for ur initiative....i vl try to follow des steps....n if any probs i vl get bk to u....

bt one thing i wanna ask des settlement agents post letter in name of bank saying dt a legal suite is filed so is that true or fake????they hav e asked my dad to be present at delhi at their head office along wd advocate on our side to talk on issue...v have done a settlement before but they have cheated us by giving fake settlement letter

avanish on September 07, 2011:

Hi i have 1 axis bank credit card. Actually i was staying in mumbai on rent now i have sifted to delhi. And i have given my mumbai address to the bank. Now if i don't make my payment then what will they do.

chhetp1 on July 22, 2011:

Hi soni, thnxs a lot for all the useful info about the credit card settlement and third party harrasment. It is obvious that I too am facing the same problem. In my instance, I have been using the credit card for three years, until the last year everything was fine. Then suddenly my dad fell sick. It was grave situation and I had to leave my job in order to take care of him. Let me mention that I am a citizen of Nepal having studied in India and was working till last year in India. Although my credit card amount is not huge including the taxes it comes to 32000. The real problem is that these third party Recovery agents have been abusing my family quite a lot recently. Today, it crossed the limit. The lady called up and started abusing my sick dad. I had enough and returned the favors. It was disgusting to talk to these ladies. I felt it was better to talk to a prostitute then these. I finally spoke with some one who said he was the manager named Chandan from the Rohini branch. He offered me about the settlements. But said for icici customers the maximum waiver can only be 10 to 12% of the principal amount. In my case the principal amount is Rs. 22000. He further told me that he will arrange the NOC to be sent online.

I know the tricks to negotiate and reduce the charges. What my concern is that I abroad at the moment. So, how should I make the final settlement and how to make sure that I am getting the genuine NOC from these people.

Please suggest on this.

James on February 16, 2011:

Great info, thanks for sharing. Thumbs up :)

SUSIE DUZY from Delray Beach, Florida on December 26, 2010:

Thanks for this information. I will use it.

raj on December 21, 2010:

Really great work Soni....

It motivated me lot..I'll surely follow steps suggested by you.

Just want to suggest one correction in your point # 3

You said that " it was 87000 minus 67400 is equal to 43600. "

I think it should be " it was 111000 minus 67400 is equal to 43600. "

Thanks again... keep it up.

P Wilvorn on December 15, 2010:

Always make sure a settlement negotiator gets your approval before making a settlement on any particular account.

utar on November 19, 2010:

Dear Soni,

It is good work....

I have two creditcards whose dues are pending, as you discussed in you blog I will contact the customer care for settlement by email............

But I like to now how to remove it from CIBIL list of defaulter so that it should not reflect in future for taking any loan.........

zaffcommunication on October 18, 2010:

gud work..keep it up

Rajinder Soni (author) from New Delhi, India on August 30, 2010:

@Personal injury calculator and Hakeem, thanks for your visit and comments. I will get back to you shortly.

Hakeem on August 29, 2010:


I had a huge debt of my credit card amounted to Rs.5 lac and i had stopped the payment from last 9 month because of lose of job and my financial problem is very serious now. This banks collection and recovery people harissing me from second month onwards to pay the dues. Till today i am not able to get the job, please help me to get out of this credit card mess. I am holding HSBC,CITI,ABN,AXIS,BARCLAY CARD ETC. these banks are going on charging late payment, intrest, to my card account continioulsy, and total outstanding is increasing day by day, tell me how to handle this people and settle this issue.

HAKEEM on August 29, 2010:


Its very practical approach given by you to settle the credit card mess which is hunting everybody. Please share other issues also like how to clear the name in CIBIL if these bank mentioned our name in it, how to check whether they deleted or included in CIBIL.

Please mail me at

Personal Injury Calculator on August 17, 2010:

Should I continue making payments on a Credit Card Settlement?

I owed $5500 to a credit card. I was trying to pay it off in full, but between high interest rates (22%), and the fact that I am over the limit ($1500 over), i decided to settle. They offered me a settlement of $2600, which I have to pay over a 6 month period. Now, upon looking on yahoo answers, everyone is saying that settling is the same as not paying it at all. Should I continue to pay on my settlement? If it is going to look the same overall, then there is no need to keep paying, however I am trying to fix my credit as best I can. Any advice would be appreciated!! >

Rajinder Soni (author) from New Delhi, India on April 05, 2010:

I request to not post spam comments on this hub. I take them very seriously. Please DON'T SPAM HERE.

Rajinder Soni (author) from New Delhi, India on March 24, 2010:

Thanks a lot Jay for adding those two points. Frankly speaking I missed the first one and the second one I did not knew about. Together we will learn. Thanks for teaching me something new.

JayFleischman on March 24, 2010:

Two points that must be clarified. When you settle a debt for less than the full amount due, that will be reported on your credit. That notation is not a positive factor in credit reporting decisions.

Second, settling a debt results in a taxable event. If you settle a $10,000 debt for $4,000 you will get a 1099 in the mail at the end of the year for $6,000 in imputed income, Subject to some limitations, you will be responsible for payment of taxes on that $6,000.

Rajinder Soni (author) from New Delhi, India on March 04, 2010:

A very nice, small, and simple tip you have provided Thomas. Thanks for the comment on how to do credit card settlement effectively.

Thomas on March 04, 2010:

In order to get good discount from the credit card company, let your card account aged into reserve status. Offer a certain percentage such as 50% to settle all. Most bank will take it as it is better than not getting anything at all.

Thomas of

Rajinder Soni (author) from New Delhi, India on March 01, 2010:

Thank you so much Jule Rizzardo. I have shared my personal experience in this articles and these types of articles always rank well than others.

Jule Rizzardo on February 28, 2010:

Thanks for the great article! Looking into all these great finance articles and yours stands out from the rest. Great advice on negotiating credit card debt!

Rajinder Soni (author) from New Delhi, India on February 20, 2010:

Thanks a lot for your comment MrSpock.

MrSpock on February 20, 2010:

A very informative hub! It's very good to negotiate a settlement as much as possible is what I've been taught.

Rajinder Soni (author) from New Delhi, India on February 12, 2010:

Thanks a lot ateenyi for your great review of this hub. I am really thankful for your appreciation and style of motivation.

ateenyi from Chicago on February 12, 2010:

Great Hub!!!!!!

The clarity and balance shine from this article. This article can be regarded as one of the most intriguing article. There are millions of people around the world who are affected by credit cards due to their high interest rates that are beyond limits. In the article all the information is centrifuged in very coherent manner and presentation is of par excellence. Thanks for sharing.

Rajinder Soni (author) from New Delhi, India on February 10, 2010:

Uva, I agree with you that paying an amount of money which is less than what bank is saying can ruin our credit score but it does not happen every time. Here in India, banks use CIBIL Credit Information Bureau (India) Limited to check the status of a person before providing any type of loan but people who pay at least more than what they have spent does not every time come under CIBIL list. There are millions of people in India who use credit cards and close their credit card accounts after a certain period of time just because of higher interest rates by paying a certain amount of money as feasible by the bank and consumers but there are some people who do not pay anything or pay very less to the banks who are termed as "intentional defaulters". CIBIL is meant for these types of cases. Regarding your answer about loan consolidation, I would say that it is a personal decision of any person that he/she wants to take more loan to pay off one loan and then again all in the well of debt or borrow some money from friends and family and use some investments or savings done previously and close the account completely. Regarding every 7 years, I know about this law being popular in US but I am not sure how many years CIBIL in India grants for a person's name and personal accounts to come out of its black list.

Uva Be Dolezal from Washington State, searching for home town. on February 10, 2010:

Had no idea one could negotiate with banks to pay off a certain amount and close the cards. Reading this then listening to the Video with scrolling text, I guess one picks the kind of harassment they prefer ? choice A. beat them at their own game but never be able to get credit again ? choice B. play their game sort of via help from some other bank or credit org, to get some sort of debt consolidation loan ? and be able to earn a credit score later.. I think ? Am I confused or am I understanding this correctly ? - *sigh* there is something seriously wrong with capitalized interest ie. no limit or consumer protection on usury and banking with no jubilee (debt forgiveness after a specific time making payments, biblically every 7 years).

Rajinder Soni (author) from New Delhi, India on February 10, 2010:

It's my pleasure Janiek13. Try it.

Mary Krenz from Florida's Space Coast on February 10, 2010:

Interesting, I might try that for my parents. Thanks for sharing!

Rajinder Soni (author) from New Delhi, India on February 09, 2010:

Then go ahead and do it Pachuchu1977. Get rid of this plastic money and live a life free of financial worries and debt. Cash transactions much more better than credit cards because you know that what you want to do with that money but plastic money is imaginative money which is not with us actually and is always a debt on us.

pachuchu1977 on February 09, 2010:

Good Information. I have a few to cut...

Rajinder Soni (author) from New Delhi, India on February 09, 2010:

Thank you so much Ethel. I like your guidance and advice too.

Ethel Smith from Kingston-Upon-Hull on February 09, 2010:

Some great advice here

Rajinder Soni (author) from New Delhi, India on February 09, 2010:

I am really glad that I was able to help a dear friend of mine by writing a hub. I wish that I write more hubs like these so that I can help others who are in need of right info at the right time. It's my pleasure Veronica that you bookmarked this hub for your husband to read.

Veronica Allen from Georgia on February 09, 2010:

This information is very helpful. I'm bookmarking it and will let my husband read it to see if this formula is something we could implement in our situation. Thank you for sharing this with us sonni.

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