Wells Fargo debt management plan (DMP).
Wells Fargo, which recently acquired Wachovia Bank, offers its credit card holders help with paying off or reducing their debts. Provided the customer is found to be qualified, they may be able to 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 meet certain conditions and also sign up for a debt management plans (DMP).
While there are no guarantees, the 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. So this new Wells Fargo solution will offer those that qualify a lower interest rate.
- What does this mean for your bottom line? If you are found to eligible as a hardship consumer and say you have $20,000 in unpaid credit card debt, then you will still have a minimum monthly payment of just $350 instead of one as high as $600 from a standard debt management plan. If someone is still a customer but is not found to be qualified for this new solution, the minimum payment for those 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. So it offers credit counseling, financial literacy, and budgeting services.
In addition to the lower monthly payments, Wells Fargo and other 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 an independent 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. So it is a so called holistic way to address an individuals overall financial situation. 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 %. This is only offered to some select customers though. If you need assistance negotiating the terms of your agreement with Wells Fargo to get the best program possible, 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.