How Does Debt Settlement Work?
Citibank is also one of the more difficult credit card companies to work with. However, they do offer several programs to consumers, including debt settlement in somewhat rare cases. So while they may not be easy to work with and it can be challenging to get help from them, it is worth a shot in trying to deal with them to reduce your credit card debt.
Before you enroll in a debt settlement program, do your homework. You’re making a big decision that involves spending a lot of your money — money that could go toward paying down your debt. Check out the company with your state attorney general and local consumer protection agency. They can tell you if any consumer complaints are on file about the firm you’re considering doing business with. Ask your state attorney general if the company is required to be licensed to work in your state and, if so, whether it is.
The consensus with citi customers is that you need to let your credit card debt go unpaid for at least 120 days before they will consider settling. So while it is always risky to not pay a bill for that long, it may work in your favor over the long term. But beware of the risks in not paying for that long as there are still no guarantees to rececing help from the company. One customer had about $10,000 in debt with citi. They went about 60 days past due and citi said that they would only settle if they had a permanent disability or terminal illness. The person then let the bills go unpaid for about 70 more days (for a total of 130 days or so), and that is when a settlement was offered to them.
Working with a debt settlement company is just one option for dealing with your debt. You also could: negotiate directly with your credit card company, work with a credit counselor, or consider bankruptcy. Talk with your credit card company, even if you have been turned down before. Rather than pay a company to talk to your creditor on your behalf, remember that you can do it yourself for free. You can find the telephone number on your card or your statement. Be persistent and polite. Keep good records of your debts, so that when you do reach the credit card company, you can explain your situation. Your goal is to work out a modified payment plan that reduces your payments to a level you can manage.
So it is possible to get assistance from this lender, though it may arguably be more difficult than some other companies. In addition to these debt settlement programs, citibank also offers other hardship plans. The lender offers a number of solutions to help struggling customers. For example, as part of these settlement programs, they have been known to offer forbearance, loan workouts, interest rate reductions, modifications, and more to help make a debt payment more manageable. The contact information is (866) 936-4814.
What Are the Benefits of Debt Settlement?
Now that you’ve studied the benefits and drawbacks of debt settlement, along with some alternative options, you should be able to decide if professional debt settlement sounds like a good fit for you. If you’re ready to move forward, the next step is to do your homework before you decide which debt settlement professional to hire. Be careful not to choose a debt settlement company with a bad reputation. You can check with your state attorney general for complaints. The consumer financial protection bureau also recommends reaching out to your state’s bank regulator to verify that the debt settlement company you’re considering is licensed to do business in your state (if required).
This method comes with its own advantages and disadvantages, much like other debt solutions. You must assess if debt settlement may truly help your financial situation. Gauge if you can weather its potential risks and if the benefits outweigh them. Check all the debt relief companies available to you, and search for alternative ways to debt freedom. This solution is particularly favorable for those with dire financial problems. They usually have poor credit, and they are on the verge of filing for bankruptcy. If you’re in a similar situation, debt relief may just be your saving grace.
This is one of the best advantages of debt settlement, but it offers more benefits as well.
Debt settlement as an option offers both benefits and drawbacks.
It can assist with reducing your credit card debt, payday loans, past bills that you owe on car loans, or other expenses. It can even provide a consumer with settlement on any unpaid personal loans that they may have. In other words, these programs offers various forms of assistance. Some of the many benefits of debt settlement include the following: allows you to avoid bankruptcy: if someone is successful with the debt settlement process, you can eliminate a large percentage of your unpaid bills and any debt burden. This will then allow the individual to pay off the remaining balance on their bills, and do it somewhat comfortably, over a usually extended payment period. They will not have the threat of bankruptcy hanging over them.
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