If you can't repay your credit cards or online loans, call the bank or platform customer service yourself to ask for a personalized installment plan or an extension; don't borrow new money to pay off old, and don't pay an intermediary for “interest freeze” (停息挂账), “credit repair” (征信修复) or “anti-collection” (反催收) services
- Moderate value
- Evidence B
- Saves money
- Free
- Takes some hours
- Some willpower
In plain words
If you can't repay a credit card but are willing to, you can negotiate a personalized installment plan (个性化分期) with the bank, for up to 5 years; once you sign the agreement, the bank has to stop collection. But the bank can say no, and records of payments already overdue stay on your credit report (征信) either way. Intermediaries who charge you to “freeze interest and put the debt on hold” (停息挂账) or to “wipe your credit record clean” (洗白征信) have been specifically warned about by regulators. Don't use them.
Mentioned in
- Don't make only the minimum credit card payment, and don't take installments or consumer loans for purchases; if you must borrow, convert the interest into an annualized rate before comparing
- If you want to cancel a policy, do it yourself with the insurer and not through an "agent canceler" (代理退保); if you feel misled, call 12378 (the banking and insurance complaint hotline) to complain
- With a serious illness, go through basic medical insurance, serious-illness insurance, medical assistance and out-of-province filing in that order, and stay away from online loans
- Check your own credit report for free twice a year for loans and cards you didn't take out
Translated from the Chinese original. Original book, section 7, tip 23. Content may be out of date and rules differ by place. When you actually deal with an agency, a doctor or a court, follow what local officials, doctors and lawyers tell you. Disclaimer