A male resident of Mumbai contacted us to help him become debt free. He was heavily in debt with credit card debts of ₹10,24,337. He was being harassed by the creditors with continuous telephone calls and visits to his home whilst he was at work and his parents were recuperating alone at home.

Due to the ill health of his parents, most of his income was being used for medical treatment and due to this he had started to miss the EMI on his credit cards

The client had no savings and was raising funds from family and friends and needed time to gather all the funds which was ₹4.5 lacs.

We were able to negotiate with all his creditors and obtained an average 58% settlement discount, saving him ₹5,92,337 and making him debt free.

We explained his circumstances and provided evidence of the ill health of his parents to all his creditors during our negotiations. We were able to negotiate a term settlement and onetime settlements (OTS). This allowed him some breathing space to successfully raise the funds for the settlements.

Following were the settlement discounts we were able to negotiate for him to become debt free:

Following were the settlement discounts we were able to negotiate for her:

1. HDFC credit card we negotiated a discount of 60%, he had missed 6 EMI and had an outstanding of ₹3,64,681. We negotiated a term settlement, to be paid over two months of ₹1,46,000, saving him ₹2,18.68.SBI Card for a credit card, we were able to negotiate a discount of 58%, he had missed 4 EMI with a total outstanding of ₹1,41,806. We were able to negotiate a OTS of ₹60,000 saving him ₹81,806.
2. SBI Card for two credit cards, we were able to negotiate an average discount of 54%, he had missed 6 EMI and had a total outstanding of ₹5,01,248. We negotiated one-time settlements for both these cards for ₹2,30,000 with a total saving of ₹2,71,248. 
3. RBL Bank credit card, we were able to negotiate a discount of 65%, he had missed 6 EMI and had an outstanding of ₹1,58,408. We negotiated a one-time settlement for ₹56,000 with a saving of ₹1,02,406.

The total debts on these credit cards were ₹10,24,337 and we were able to get them all settled for ₹4,32,000 giving him a total saving of ₹5,92,337.

After settling these credit cards, he became debt free and our Advocates checked the authenticity of the bank’s settlement letter. Vetted the settlement letters and ensured that the creditors in their letter had confirmed that the debts would be recorded as “Full and Final” or “Closed”. In addition, we confirmed that creditors would stop the visits and phone calls before we advised the client to pay the settlement in full.