Dear Sir / Madam. SBI credit card issue. I have paid twice more than I have borrowed. Now I want to settle as one time payment. My outstanding is 29000. Bank offers one time settlement ie. 24000 which is not acceptable for me. I want a lessor settlement amount. Now they are going for legal action. Please advice me how to settle the amount and come out of credit card issue through court or any other means. Thanks
Dear Mr Palaniswamy

A legal battle will probably cost you more than 24,000. At the same time, a settlement is also not the answer, because it will hurt your credit score and have an impact on your future borrowing and your credit life.

In credit cards, if you have not paid your full dues on time, then the outstanding compounds very rapidly and at a high interest rate. This is clear in the terms and conditions.

So it is not a question of what is acceptable, but what you are legally required to pay. One option would be to take a personal loan (at a lower interest rate) and pay back your credit card outstanding and not delay payments or avoid part payments.

This will ensure that your credit score is largely protected — although you already have a problem because of the delay.

You need to check for good rates on personal loans . Your amount is not very large and it will be a pity if you hurt yourself by doing the wrong thing.

If you want to speak to our counsellor (who is a senior, retired chief general manager of customer services at the RBI, you should call our office at the time he is here) . Please send a detailed email to be forwarded to him in advance to [email protected]

Ms Shilpa or Mr Akshay Naik will guide you if you need further help.
Our Experts

Sucheta Dalal Trustee - Moneylife Foundation

Suresh Prabhu Mr Prabhu retired as Senior Vice President from HDFC Bank

R Bhuvaneswari After serving Bank of Baroda for almost 40 years, Ms Bhuvaneshwari retired as Chief Manager in 2013.

Yogesh Sapkale Yogesh Sapkale is Deputy Editor of Moneylife and writes on finance, credit related issues

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