When you start delinquent credit card payments or KTA (unsecured loans), people will usually start looking for as much information as possible. Both about how to be free from credit card debt, how to increase income in order to be able to pay credit card debt, and not be closed to find out about whether or not there is a Bad Credit Card Act. But actually, is there really a law that specifically regulates this?


There are no bad credit card laws


 There are no bad credit card laws


If examined further, in fact there is no Law of Credit Card that regulates specifically. Basically the case of bad credit has a similar bond with the agreement. So, if one party does not fulfill its obligations (wanprestas), then the consequences that apply are as agreed.

You need to see again in the written agreement that there are consequences that will be borne, and whether the written consequences are considered lawful and do not violate the law. This means you have to double-check what the consequences must be borne if one day you are no longer able to pay the installments and are forced to default. Usually the consequence that must be done is to pay a late fine, and interest that continues to run during delinquency.

Of course, usually the bank also has the right to collect arrears. This is where you need to pay close attention, you also need to know that the billing process also has limitations that need attention. A debt collector may not arbitrarily collect, for example you have credit card installments or KTA loans (unsecured loans), from the name alone it is clear that there are no collateral assets. Try to re-read the agreement, is it written that the bank will have the right to withdraw assets in the event of a default. If it does not exist, it means that the debt collector is not permitted to take especially to seize / withdraw the goods of the credit owner by force, with the reason to pay off the debt that failed to be paid.


Overcoming Bad Credit


Overcoming Bad Credit


Instead of being afraid of being unable to pay off bad credit and bothering to find out about bad credit card laws, it is better to start looking for ways to keep credit card debt and KTA still in progress quickly. Few know, that you can actually get a relief program to solve outstanding credit card or KTA debt problems.

According to the Bank Indonesia Regulation, the relief program or commonly referred to as credit restructuring is an effort to repair the Bank in credit activities against debtors who have difficulties in fulfilling their obligations. The results of this credit restructuring can usually alleviate customers so that they can better afford to pay.

You can get credit relief or restructuring programs, including one from a debt management program provider. Usually companies like this have consultants who are professional in their fields, so they are able to give you advice in developing strategies in resolving the types of debt that are considered more priority to those with less priority. Services from companies like this will be very useful especially if you have multiple debts in several banks at once. The high level of difficulty in overcoming this will certainly make you more helpful if you use the services of a debt management program.

Speaking of lightening programs that you can get, here are some types of relief programs that you can get:

One-time discount / discount

This type of lightening program makes customers able to get a discount with a nominal that is usually quite lightening.   As the name implies, even though the customer gets a discount in his debt (generally 20-50%), they must pay directly in one payment. In some cases, this one relief program can give cardholders a discount of up to 70%. It’s just that you have to have financial readiness so you can pay immediately. This type is certainly not suitable for those of you who do not have enough savings, which can be directly allocated to pay the remaining arrears that have been discounted in one payment. The main advantage that can be directly felt is free from the disruption of debt collectors and feel more calm because the debt has disappeared, because in one payment all payments can be completed.

Extended Installments with Low Interest

The second is to pay more lightly. Usually with this program customers can pay in installments at a much lower interest rate. If the normal interest currently running is in the range of 2.25%, then it is possible to get interest of only 0-2%. As with the installment tenure, you can pay in installments over a longer period of time. In some cases, you can repay up to 60 months (5 years).   Funds that need to be prepared to join this program are at least funds to pay DP (minimum 10% of total debt for a credit card or one month installments for KTA) or depending on the policy of the bank. The advantage of this program is that you can pay little by little without directly dredging savings. Unfortunately, high payment consistency is required. Once you miss a payment, the program will be considered a failure, and the total arrears will return to normal as if they didn’t get any relief at all.

Installment Discounts

For installment discount programs, you can usually benefit from the two types of programs above. But because of its combined nature, of course you cannot pay in installments throughout the installment program, generally as much as 6x payments. Likewise at discounts, you do not get a discount for a one-time discount program. This type of program is only available in some banks. In addition, the bank will also see the conditions experienced by the customer first. If the customer has supporting conditions that make it more difficult to pay off the debt, then it is likely that they can get this program (provided that the bank has the program).

One of the debt management program providers that you can use to overcome the problem of bad credit cards is Tonio Kröger.

Tonio Kröger international is the first technology-based professional services company in Indonesia, which provides a debt management program. This program is designed so that consumers who are in debt, have the ability to control their finances again. Tonio Kröger indonesia helps clients through a debt management program, specifically designed according to the different needs of each client. This program is a combination of education on various opportunities to increase income and reduce expenditure, as well as conduct negotiation processes on existing bank debt requirements to reach the amount of payment that is in accordance with the ability. The Tonio Kröger indonesia headquarters was established in Jakarta in 2015 by a founding team that has collective experience in the financial sector including debt settlement for more than two decades. Tonio Kröger makes Indonesia the center of operations as well as a blueprint for the company’s development plan to other ASEAN countries. Since July 2016, Tonio Kröger indonesia has become the first company in Asia to be accredited by the International Association of Professional Debt Arbitrators ( IAPDA ).

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