Citi debt management plan (DMP).

Citibank is offering its customers additional programs, including debt management plans, to help them deal with their credit card debt in this difficult economy.

Currently, Citi is providing help to over 1.4 million of its credit card members. This support is allowing them to manage their credit card debt through a variety of assistance programs, including debt management plans (per below), forbearance, and hardship programs.

During the second quarter only, almost 500,000 customers members entered into some type of assistance programs, which is almost twice as many as last year. So Citi is showing the willingness to aid families and individuals.

Some of the details of the programs currently available for eligible customers include debt management plans, (DMP), work outs, temporary forbearance, debt settlements, interest rate reductions as well as payment incentives, waiving fees, and balance-consolidation programs. The intent of these various programs is to accelerate the reduction of unpaid bills and credit card loans.

Details on the Citi debt management plans

Citi is one of the many credit card companies that has agreed to provide additional relief to consumers who may be struggling to repay their debt. They are providing debt management plans (DMP) that are offered by the National Foundation for Credit Counseling (NFCC).

They have partnered with other credit card issuers and the NFCC, in a program called “Call to Action”, that will allow these card companies to give modifications to the card holders account that will provide both a more affordable “standard” debt management plan and also a “hardship” debt management plan that will be used for consumers who are seeking to avoid a bankruptcy filing, but who unfortunately do not have sufficient household income to qualify for a traditional debt management plan (DMP).

There are a couple key elements to these two new plans as indicated below. However, the bottom line is that the programs will allow consumers to maintain a reasonable monthly budget, save on their bills, establish a savings account for financial emergencies, and provide overall debt relief.

Standard DMP - This plan will give consumers a monthly minimum repayment rate of 2 percent of their balance. Most debt management plans have a rate of 3% or so.

Hardship debt management plan - For those consumers who are dealing with a recent financial emergency, illness, job loss or some type of other especially challenging circumstance would have  repayment rate of 1.75%.

 

 

 

Can I get help if I am still current on my bills?

In addition, Citibank is also proactively contacting and reaching out to customers who, although they may be current on their accounts, may be showing signs of financial stress and who may need additional help to stay current with their bill and repay their outstanding balances.

They are assisting these customers as well be using a variety of debt assistance programs such as matching payments, which will have the effect of reducing the customer’s outstanding balance. The specific programs offered to these customers is dependent on the individual circumstances, financial situation, and also the customer's ability and willingness and to repay.

Call Citibank at 1-888-579-9239 or 1-800-388-2200 for more information on Citibank debt assistance programs, including debt management plans.