I have a credit card written off status on my cibil . This is about 2 lakhs on 2 credit card. I made last payment in 2019 and was unable to make payments later as I lost my job.Now i have stable job and can pay off 2 lkahs, My worry is will the bank take 2 laksh or add interest on that and ask me to pay 8 or 10 lakhs for this ? can anyone advice if this situation is similar and have you heard about any solutions . I can make payment of 2 lakhs outstandng as reflecting in my cibil report

Ans: First, appreciate your honesty and responsibility.
You faced job loss and survived a difficult phase.
Now you have income and intent to close dues.
That itself is a strong and positive step.

There are solutions available.

What “written off” actually means

– “Written off” does not mean loan is forgiven.
– It means bank stopped active recovery temporarily.
– The amount is still legally payable.
– Bank or recovery agency can approach you.

– CIBIL shows this as serious default.
– But it is not a criminal case.

Your biggest worry clarified clearly
Will bank ask Rs. 8–10 lakhs now?

In most practical cases, NO.

– Banks rarely recover full inflated amounts.
– Interest technically keeps accruing.
– But banks know recovery is difficult.

– They prefer one-time settlement.
– They want closure, not long fights.

What usually happens in real life

– Outstanding shown may be Rs. 2 lakhs.
– Bank internal system may show higher amount.

– They may initially demand more.
– This is a negotiation starting point.

– Final settlement usually happens near:
– Principal amount
– Or slightly above principal

– Rs. 8–10 lakhs demand is rarely enforced.

Why your position is actually strong

– Default happened due to job loss.
– Time gap is several years.
– Account is already written off.

– You are now willing to pay.
– You can offer lump sum.

Banks respect lump sum offers.

What you should NOT do

– Do not panic and pay blindly.
– Do not accept verbal promises.
– Do not pay without written confirmation.

– Do not pay partial amounts casually.
– That weakens your negotiation position.

Correct step-by-step approach
Step 1: Contact bank recovery department

– Call customer care.
– Ask for recovery or settlement team.
– Avoid agents initially.

Step 2: Ask for settlement option

Use clear language:
– You lost job earlier.
– Situation is stable now.
– You want to close accounts fully.

Ask specifically for:
– One Time Settlement option
– Written settlement letter

Step 3: Negotiate calmly

– Start by offering Rs. 2 lakhs.
– Mention it matches CIBIL outstanding.

– Bank may counter with higher number.
– This is normal negotiation.

– Many cases close between:
– 100% to 130% of principal

Rarely more, if negotiated well.

Important: Written settlement letter

Before paying anything, ensure letter states:

– Full and final settlement
– No further dues will remain
– Account will be closed
– CIBIL status will be updated

Never rely on phone assurance.

How payment should be made

– Pay only to bank account.
– Avoid cash payments.
– Keep receipts safely.

– After payment, collect closure letter.

Impact on your CIBIL score

Be very clear on this point.

– “Written off” will not disappear immediately.
– Settlement changes status to “Settled”.

– “Settled” is better than “Written off”.
– But still considered negative initially.

– Score improves gradually over time.

What improves CIBIL after settlement

– No new defaults
– Timely payments on future credit
– Low credit utilisation
– Patience

Usually improvement seen within 12–24 months.

Should you wait or settle now?

Settling now is better because:

– Old defaults block future loans.
– Housing loan becomes difficult.
– Car loan interest becomes high.

– Emotional stress continues otherwise.

Closure brings mental relief.

Common fear: “What if they harass me?”

– Harassment has reduced significantly.
– RBI rules are stricter now.
– Written settlement protects you.

– If harassment happens, complain formally.

Have others faced this situation?

Yes, thousands.

– Many lost jobs after 2018–2020.
– Credit card defaults increased widely.

– Most cases got settled reasonably.
– You are not alone.

Things working in your favour

– Old default
– Written-off status already marked
– Willingness to pay lump sum
– Stable income now

This gives negotiation power.

After settlement: what next

– Avoid credit cards initially.
– Start with small secured products.

– Pay everything on time.
– Keep credit usage low.

– Score will heal gradually.

Final reassurance

You will not be forced to pay Rs. 8–10 lakhs suddenly.
Banks prefer realistic recovery.
Your readiness to pay Rs. 2 lakhs is valuable.

Handle this calmly and formally.
Take everything in writing.
You are doing the right thing now.