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Citi debt management plan (DMP).

Citibank is offering its customers additional programs and solutions, including debt management plans, to improve their financial situation. The resources are being made available to qualified individuals in order 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 account holders. This support is allowing them to repay and manage their credit card debt. They are doing this 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, settlements, interest rate reductions as well as payment incentives. Some of the other solutions may be the bank waiving certain fees and administering 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 debts. 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”. Together these companies are offer solutions to families. The Call to Action program is the name of a resource that will allow these lenders to give modifications to the card holders account that will provide both a more affordable “standard” debt management plan and also a “hardship” plan that will be used for consumers who are seeking to avoid a bankruptcy filing. Many of those that are assisted 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 money 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. So the savings over time are fairly significant.

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, this may be an option. It would have a repayment rate of 1.75%.

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

In many cases this is still possible. 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. Many of these may need additional help to stay current with their bills and need just a little extra assistance in order to repay their outstanding balances.

They are assisting these customers as well by 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 to repay.

 

 

 

 

Applying for DMP from Citi

Call Citibank at 1-888-579-9239 or 1-800-388-2200 for more information. Representatives can advice consumers on these Citibank assistance programs or other resources, including a variety of debt management plans.

By Jon McNamara

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