New Delhi, May 16 -- Missing credit card payments for an extended period can eventually lead to a default, after which banks may offer a one-time settlement option to recover part of the outstanding dues. While such settlements may provide temporary financial relief to borrowers struggling with repayments, they can leave a long-lasting impact on a person's credit profile and future borrowing ability.

A default notice is usually sent by the credit card issuer after 6 consecutive missed payments, according to a report by Paisabazaar. If you keep missing payment of credit card bills on time, you may be charged with hefty interest charges and end you up becoming a defaulter.

Once your are marked as defaulter, the bank may categorise the acc...