Wells Fargo debt management plan (DMP).

Wells Fargo, which recently acquired Wachovia Bank, offers its credit card holders help with their debt if they use a debt management plan. In part Wells Fargo is offering this program as a result of a nationwide effort by major credit card companies that goes by the name of Call to Action. The Call to Action program is a partnership between the National Foundation for Credit Counseling and 10 major banks that have agreed to offer hard hit consumers credit card debt relief if they sign up for a debt management plans (DMP).

Wells Fargo debt management plans are an effective way to reduce your debt and get back on your feet. Some details of the program include :

• If you are considered a Hardship cardholder, which means that you are dealing with a financial emergency or a recent job loss, you would owe a minimum 1.75 percent repayment rate on your unpaid credit card bills.
   
• If you are not a hardship case, but still need debt assistance, you will be set up with a monthly minimum repayment rate of 2 percent of your outstanding balance. Today, under most existing DMPs on the market, that minimum repayment rate can reach as high as 3 percent of your balance.
   
• What does this mean for your bottom line? If you are eligible as a hardship consumer with $20,000 in unpaid credit card debt you will have a minimum monthly payment of just $350 instead of one as high as $600 from a standard debt management plan, while the minimum payment for other consumers on the Wells Fargo DMP would be $400.
   
• The Wells Fargo debt management plan also encourages some level of savings for any future emergency needs.

 

 

 

In addition to the lower monthly payments, Wells Fargo and creditors who are participating in this new Call to Action DMP will waive both late and over the limit fees. They will also proactively adjust the APR so that the debt management plan will allow you to get out of debt within 60 months. If you think you need help from a credit counselor in addition to this DMP, find how counselors can help. More.

The goal of the Wells Fargo Call to Action DMPs is to help consumers keep a reasonable monthly budget so they can pay both their everyday bills, such as utilities and groceries, and also ensure that they do pay off their credit card debts. The programs want to ensure consumers get out of debt within 60 months at the latest.

Details on the Wells Fargo debt management plan include :

Call to Action Standard Monthly Payment Percentage of Balance: 2%

Call to Action Standard Interest Rate: 7.3%

Call to Action Hardship Monthly Payment Percentage of Balance: 1.75%

Call to Action Hardship Interest Rate: 0%

If you qualify for the Wells Fargo hardship program, your interest rate can be zero %. If you need assistance negotiating the terms of your agreement with Wells Fargo to get the best program, find how to negotiate credit card debts.

The Wells Fargo DMP can go a long way towards helping people eliminate debt. Be sure to take advantage of this program while you still can. Dial 1-800-869-3557 to speak to a Wells Fargo representative.