Paying credit debt is one of the issues that should not be neglected about banking. Today, many citizens knock on the banks of the banks as a result of financial difficulties.
Many banks, aware of this close relationship, develop and expand their existing loan types. For citizens, it is to identify the bank that offers the most advantageous loan offer for all of these loan options and then to pay this loan amount according to the payment plan determined by the bank.
Failure of citizens to know their credit responsibilities and conditions can cause major problems in the long run.
What is Credit Debt?
Credit debt is a much more common situation, with the demand for bank loans increasing day by day. Under normal circumstances, banks do not provide this service without making sure that their customers applying for loans will pay this loan amount at the specified time.
However, it still happens that this loan cannot be paid from time to time.
The first method used by banks to guarantee the repayment of the loan given to the customers is to obtain an income certificate from the customers during the application.
The banks, which are sure that the customer has a regular income and can repay the loan received with this income as specified, give positive feedback to this application and provide credit service to the customer.
However, the failure to make these payments due to unrelated setbacks causes credit debt. In such times, a different path is followed by banks. Getting familiar with this path provides convenience to customers in paying the debt.
What happens if credit debt is not paid?
What happens if credit debt is not paid is one of the most frequently asked questions by bank customers. In case a citizen does not pay the loan debt to the bank to which he is a customer, the path followed by each bank differs in itself. However, in general terms, the same points are mentioned. Customers should learn the behavior of banks in case of non-payment of debts and act accordingly.
Credit or credit card debts are regulated by the Consumer Credit Agreement Regulation in our country. According to this regulation, credit debt occurs when two consecutive installments are not paid.
When this happens, the bank gives its customers a 30-day release. If the customer still does not pay the current debt, the process begins. The Bank will try to collect the debt by applying legal transactions in this process.
What is the Interest Rate Applied for Credit Debt?
From the moment you do not pay two installments in a row, your credit debt occurs to the bank you are a customer. The bank applies to interest on the amount you will pay while collecting this debt.
However, this amount of interest applied is kept within certain limits by the Consumer Loan Contracts Regulation.
After the debt is not paid and as a result of the legal process begins, a maximum of 30% more than the interest rate of the loan you use will be applied to the loan amount you will pay late. Banks that apply delay interest more than this rate are intervened as soon as possible.
Persons with credit debt can learn the interest rate of the delay to be subjected to the debt payment stage by visiting the branch of the bank to which they are a customer or by filling out the “credit delay interest calculation” form on their website.
Is Credit Card Debt Deleted?
What happens if I do not pay my credit and credit card debt and the most curious point about it is whether these debts are deleted. It is possible to erase the credit card debts which are getting more and more common nowadays.
However, this debt relief issue, although uncertain, is quite troublesome. Therefore, citizens who owe the bank should go to pay this debt as soon as possible without waiting for the possibility of being deleted.
Credit or credit card debts can be cleared by amnesties issued by the government in the interim periods. However, these amnesties are not certain to be applied. These extremely ambiguous amnesties may not be applied at all during the time the person owes. Another way to erase credit card debt is 20 years limit.
Credit card debts over 20 years are deleted because they will time out. Citizens who say that how many years their credit card debt is deleted can not benefit from this right except for 20 years. Apart from these, it is not possible to delete credit and credit card debts.
In case the credit debt is not paid, will foreclosure come?
We mentioned that if the credit debt is not paid to the bank within the specified time, the legal process will be initiated. There are many stages of the legal process that the bank applies to citizens who do not pay their loans.
The foreclosure process is one of these stages. However, there are some conditions that are observed during this foreclosure process applied by banks. Both parties are expected to comply with these conditions.
For example, up to 25% of your salary can be foreclosed. Apart from that, foreclosure can be applied to all items, immovable, and vehicles registered on you.
Valuable documents, gems, and jewelry can also be taken as alien according to the initiative of the bank. Citizens who think that if the loan debt is not paid will come home foreclosure should know these conditions well.
How to Configure Credit Debt?
Structuring the current loan debt is the most logical solution for the borrower citizens. Citizens with credit debt to banks can obtain the time required to pay by configuring these debts. However, citizens who say that I can not pay my credit debt should know the necessary conditions for debt restructuring.
Credit debt restructuring is basically the process of reorganizing the existing debt and recalculating with interest rates different from the first if a customer is unable to pay the debt to the bank. In this process, the bank applies a different interest system so that you can pay the debt more easily.
Citizens who want to structure their credit debt should first apply to the bank they owe with this request. Banks evaluate this application and go to the configuration if it deems necessary. As a result of the contract signed after this process, the credit debt of the customer is delivered to the experts for recalculation.
However, not every loan debt is taken into configuration. For this reason, the borrowed citizens should definitely get exact information about this process from the relevant bank. For the configuration process, a small transaction fee is charged from the customer.