Credit Card Settlement in India: A Safe Way to Settle Credit Card Debt
Credit card settlement searches spike when borrowers feel trapped under interest, penalties, and nonstop calls. While settlement is possible, it is also one of the most misused and mis-sold services in India.
This guide explains how credit card settlement actually works, how banks decide settlement amounts, and how to avoid unethical debt settlement companies.
How Credit Card Settlement Works
Usually considered after prolonged default
Banks may accept 30–60% of total dues
Must be approved in writing
Reflected as “Settled” on CIBIL
Why Credit Card Settlement Is Risky Without Guidance
Many borrowers fall for:
“Cred settle”-style claims without disclosure
Debt relief companies asking for upfront fees
Partial payments without settlement confirmation
Credit Card Settlement vs Continuing Default
| Factor | Settlement | Default |
|---|---|---|
| Stress | Controlled | High |
| Legal Risk | Lower | Severe |
| Credit Damage | Temporary | Long-term |
Can You Rebuild Credit After Settlement?
Yes. With:
Time (12–24 months)
Responsible credit usage
Proper documentation
Loanmukt’s Role
Loanmukt helps borrowers understand consequences before acting, instead of pushing settlement blindly.
Key Warning
If someone asks you to stop paying EMIs without explaining legal consequences, walk away.
