Find how to get help from credit card settlement programs.
Today, almost all credit card issuers are working closely with customers to offer different types of debt settlement programs. The banks and lenders listed below have determined that it is better to get some payments from customers rather than nothing or to see the customer file for bankruptcy. The banks are taking a variety of actions, including offering hardship programs that lower monthly payments, reduce interest rates, waive fees, offering to settle debt, or they may be referring customers to a debt management plan.
Like most options to getting out of debt, you need to take a close look at this program and weigh the pros and cons. As debt settlement has benefits and disadvantages. Typically you will need to have had to missed a couple of payments on your bills before a credit card issuer will even consider the debt settlement plan. So, while you are late on and/or missing these payments, you will probably experience collection calls and could even very likely be sued for collection.
The number of people they are offering support to is increasing. They are willing to now even help those who are just struggling to make their monthly payments on their accounts. So in other words, credit card companies as well as banks are not limiting assistance to only those customers that are considered “hardship” cases or who are already way behind on their bills.
Always remember that it is possible that a credit card debt settlement program can reduce your credit score and ratings, so be sure to check in with the lender. Ask them for details on how to settlement program will work. Be sure you understand how they will report your account to the credit rating agencies. Depending on the bank and how they report it, your credit score may be impacted differently depending on whether you agree to a settlement or to pay in full.
Another option to consider if it is offered to you is debt management plan. Most banks that issue credit cards allow this form of assistance as well. If the entire amount of your unpaid account is placed into a debt management program and you then proceed to pay off the balance over time, this type of program won't negatively affect your credit. So consumers do have some different options to explore.
The bottom line is that if you do need to settle the debt for less than the full balance owed to a creditor, there will almost always be a negative impact on your credit scores. However the impact to your rating though is not as bad as if you were to default and not pay your bills at all.
Find information on a variety of credit card debt settlement assistance programs
Get details on what the major banks and card issuers are offering consumers to help them. The deals are not well publicized and almost always they are being offered on a case-by-case basis to customers. Individuals need to be pro-active in requesting help.
In order to enter into one or get assistance, you will need to call the customer service number on the back of your credit card to determine your eligibility. You may need to ask for a supervisor, or even negotiate your bills. If you are not comfortable in dealing with these credit card companies yourself, consider using a debt counselor on a contingent basis.
To find more information on the specifics for hardship programs offered by banks and lenders, click here. They often include credit card debt settlement as well as so much more. Hardship programs do differ in some ways from settlements in what is offered and the process. You can find real examples of how people saved and received debt relief. More on how to get credit card hardship help.
Credit card bill settlement deals from banks and lenders
American Express is fairly aggressively eliminating fees, including late payment charges as well as other fees. In addition, they will work with customer to significantly lower their monthly payments. They accomplish this by offering a lower interest rate (which can be as low as 0%). Or they offer other steps to settle the credit card debt.
In general, Amex will also agree to providing a lower monthly minimum payment. The American Express debt settlement and hardship programs are open to all card members to apply for, and not just delinquent ones. Cardholders will need to agree to a payment plan, and during the time they are on the plan they can’t use their card for purchases. There may be other restrictions too. However, when they successfully complete the plan they can resume using their Amex.
Bank of America is extending their repayment periods for select customers as part of credit card debt settlement services. They are now offering repayment periods that can last up to five years or longer. In addition, they are lowering interest rates, and the rate they offer could be in the low single digits.
BOA does also settle credit card debts, and they will do this on a case-by-case basis for select consumers. Proof of income, hardship, and other information may be needed as part of the application. They may end up deciding to settle your debt for less than the full balance that you owe them. More on settlement of Bank of America credit card debt.
Capital One is generally offers an interest holiday to customers. People who are delinquent on their cards are being offered up to six months of zero interest rates on their accounts. Other assistance may also be offered as part of their settlement process. This will in effect help them catch up on their payments. In addition, the hardship program may include debt settlements, fee waivers, payment plans, and APR reductions.
Chase debt settlement includes programs that will restructure balances to lower interest rates. Other fairly common steps include they will extend repayment terms using several payment programs and they may also waive over-limit as well as late fees on an account.
When they offer interest rate reductions, they may be effective anywhere from nine to 60 months. While the exact new rate will vary based on several factors, it primarily depends on the customers personal financial situation and payment history. They may offer a rate as low as zero % to true hardship customers. Read more on Chase debt settlement.
Citi has credit card settlement programs that will help their customers get back on track with paying their bills. The national bank may, in some cases, settle debts, provide temporary forbearance, offer free debt consolidation loans, interest rate reductions, matching payments, and more. If a customer pays more than the minimum monthly amount due for 4 straight months, Citi is offering a credit equal to 20% of the amount paid beyond the minimum amount that was due. So pay on time, and also save more. Continue reading about Citibank debt settlement.
Discover Card has been offering debt assistance as well as settlement programs to some existing card members which will allow them to consolidate their outstanding bills into a fixed-rate, lower interest rate. This is accomplished using an installment loan that is issued through Discover Bank.
In addition, if the customer has a severe financial hardship or unusual conditions, they are offering a settlement program that gives them a variety of single-digit interest rates. This will make future payments more affordable. Details on debt settlement from Discover.
Settle medical debt - Hospitals, doctors, and health care providers also offers programs to settle debt. This will help patients deal with healthcare or dental bills that are due. While many of the terms and concepts are the same as credit card settlements, medical debt does have some unique characteristics. Read more on medical debt settlement programs.