Find help with paying your debt from government resources.
One result of the increasing federal government is that credit card issuers are offering their customers more help with paying off their debts. The reason this is occurring is that many of the budget plans are indirectly encouraging banks and lenders to provide this assistance as part of various credit card debt relief government programs.
There are numerous examples and instances of credit card companies, such as Bank of America, Capital One, Visa, Chase and others settling delinquent credit card accounts for much less than the amount owed by the consumer. Or there are interest rate reductions as well as refinancing or deferrals encouraged by the government debt relief services. Many credit card companies are also offering their customers other breaks, and this is made available to families who are struggling with their debts.
The American Bankers Association, which represents many banks, financial institutions, and credit card companies, has also confirmed that settlements as well as financial assistance programs are becoming more common in the industry as the result of credit card debt relief from the state or federal government. The goal is to help both the bank as well as borrower. The banks want to be able to say that yes, government help is resulting in more assistance being provided to families.
Bank of America
Bank of America over the years has received tens of billions of dollars in federal government assistance, and they are one of the banks that is confirming that they are settling more credit card accounts. They are deciding on a case by case basis whether to settle with the customer and how much debt relief to offer. Many speculate that the government has put added pressure on Bank of America to take this approach due to the amount of financial aid they have received over the past years.
Many payment plans as well as government debt relief services are offered. The banks customers service team can provide free advice, and find a list of Bank of America assistance programs. If you do not have success in settling your debt with them, find out how a debt settlement process may help.
Another recipient of government aid is American Express. They are also providing additional credit card debt relief to their customers as a result of the government help. American Express has apparently empowered front line employees, or so called customer service representatives, to be able to provide customers with options to reduce or eliminate their credit card bills and to get back on track. They are trying to make the process as simple as possible. Find more on the American Express credit card help and hardship program.
They are providing a wide variety of credit card debt relief assistance programs to families. HSBC is taking a very pro-active approach to this issue. There are examples of which they have offered certain customers a plan that will eliminate about 10-20% of their debt. In some of those cases, the customer rejected the initial offer as they were still not able to pay the bill, and then HSBC would come back with an even better debt reduction offer for the customer. In some cases they would eliminate up to 50% of the customers outstanding credit card bills.
While HSBC did receive government assistance, theirs mostly came from the United Kingdom as they are based there. HSBC has really started this program to protect themselves, as they would rather receive something from the delinquent account rather than see the person file for bankruptcy, in which case they would get zero. When dealing with this lender, or any other for that matter, consider a credit counselor when negotiating with a bank.
Citibank also provides credit card debt relief from government funds
One of the biggest benefactors of government support over the years is Citi. Tens of billions of dollars were provided to them. Many speculate that Citibank is working closely with the government to provide credit card debt relief help to qualified low income individuals. Citibank, also known as Citigroup, has also empowered employees to provide assistance, and they may also proactively call customers who are falling behind in paying their credit card bills to offer them plans and see what else they can do to help.
This company also offers other options, such as consolidation. For customers of this bank, you need to also consider debt consolidation loans if having difficulty in working with Citigroup or any other bank. They are very effective. Find how to apply for debt consolidation loans.
Help with credit card debt as a result of government assistance
The bottom line is additional help is being offered by credit card companies, banks, and other lenders. All across the industry this is occurring. Discover Card, JP Morgan, and many others are participating. Whether it is the result of encouragement from the government to help with debt, or whether banks are doing this in their own self interest, now is the time to take advantage of these opportunities to try to reduce as well as get out of credit card debt.
If you are not comfortable in calling the issuer yourself, you can learn about some debt negotiation tactics that may be useful when talking to any bank or card issuer. Continue with getting out of debt by negotiating.
While it is true that more assistance with credit card bills is available for hard pressed consumers from banks, the fact is that there is more government credit card debt relief as well. As the federal as well as state government are putting more pressure on lenders to help people with credit card debt. If someone stops paying their bills completely and files for bankruptcy, the banks lose out as well. They would not be able to get any money from that customer if they file for bankruptcy, and the bank would rather settle to get something.