The Trap of Multiple Credit Cards

At first, having multiple credit cards feels like freedom—shopping, travel, instant cash whenever you need it. But slowly, swipe after swipe, the bills pile up. When you can’t pay on time, penalties and interest charges start eating you alive.

This is the story of Rohit (name changed for privacy), a 32-year-old working in a private company in Pune. Like thousands of young professionals in India, he fell into the credit card debt trap.

By the time he came to us at Lawfully Finance, he had:

• 7 active credit cards
• ₹6 lakh total outstanding
• Heavy penalties & interest (almost 36–42% annually)
• Daily harassment calls from collection agents

Most people in his situation think there’s no way out. But within 6 months, Rohit closed all 7 loans with just ₹1.5 lakh.

Here’s how it happened.

From ₹6 Lakh Debt to Freedom in Just ₹1.5 Lakh: How a 32-Year-Old Cleared 7 Credit Card Loans in 6 Months

1. The Problem: Credit Cards Turned into a Nightmare

Rohit’s journey into debt was common:

• He used credit cards for shopping, gadgets, and family expenses.
• When EMIs started, he paid only minimum amounts.
• Soon, the interest snowballed—what started as ₹2–3 lakh quickly became ₹6 lakh.
• Recovery agents started calling day and night, even contacting his office.
• He was scared, embarrassed, and losing focus at work.

👉 This is the danger of credit card debt—the interest rates are so high that even if you pay minimum dues, your debt keeps growing.

2. How Lawfully Finance Helped Him

When Rohit reached out, our team followed a step-by-step strategy:

Step 1: Stop Harassment

• We took over all communication with recovery agents.
• Rohit no longer had to deal with embarrassing calls at work.

Step 2: Assess the Real Debt

• Out of ₹6 lakh outstanding, a large portion was penalty + interest.
• The actual principal used was much lower.

Step 3: Negotiate Settlements

• Our legal-finance team opened negotiations with each bank.
• We used legal provisions + RBI guidelines to push for settlements.
• Since Rohit had no assets for seizure (unsecured loans), banks were open to negotiation.

Step 4: Create a Repayment Plan

• Instead of demanding a lump sum, we structured payments across 6 months.
• Rohit paid small installments, which we consolidated and closed card by card.

3. The Result: 7 Loans Closed in 6 Months

✔ Original outstanding: ₹6,00,000 (including penalties)
✔ Final settlement amount: ₹1,50,000 only
✔ Timeframe: 6 months
✔ All 7 credit card accounts closed with NOC (No Objection Certificate)
✔ CIBIL impact managed—though “settled” status shows, Rohit can now rebuild his score step by step.

👉 Imagine the relief—no more recovery agent calls, no more penalty piling up, and financial peace of mind within half a year.

4. Lessons from Rohit’s Case

If you’re stuck in the same trap, here’s what you should learn:

• Never ignore credit card dues – penalties grow faster than you think.
• Don’t deal with recovery agents alone – they often pressure you illegally.
• Settlement is possible – but only if negotiated properly.
• Professional help matters – Rohit couldn’t have convinced 7 banks on his own.

5. How You Can Bounce Back After Settlement

Many borrowers worry: “What about my CIBIL score?”

👉 Yes, settlement marks your report, but it’s not the end. With the right steps:

1. Get official closure letters from banks.
2. Start using secured credit cards to rebuild history.
3. Pay all new EMIs on time.
4. Within 12–18 months, your score can recover significantly.

Conclusion: You Can Also Be Debt-Free

Rohit’s story proves one thing: no debt trap is permanent.

✔ From ₹6 lakh of credit card loans, he walked free in just 6 months by paying only ₹1.5 lakh.
✔ His mental stress is gone.
✔ His career and dignity are safe.
✔ His financial future is back on track.

If you’re struggling with multiple loans or credit card debt, remember: you don’t have to suffer alone.

👉 Lawfully Finance is here to help you.
We’ll protect you from harassment, negotiate with banks, and create a safe settlement plan tailored to your situation.

📌 Book your confidential consultation now:
Click Here to Get Help Today