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Using Citibank hardship program may help overcome your monthly debt

by

Credit Guru

Is it hard to get out of credit card debt? Citibank hardship program can help you pay your credit card debt or monthly bills. During the present economic crisis, it has become common for the lenders to find out good card holders who maintain good credit scores in spite of the financial situation they are facing. Are you thinking about why banks or credit card companies come up with hardship programs? Citibank offers a credit card hardship program as well. How to get help from Citi credit card hardship programs? Citi offers a variety of assistance. While they can be difficult to work with, and it may take repeated calls and transfers to find the correct people, if you persevere you can get help. Here is what they can offer:

1. They may waive late fees and charges for the length of the program. 2. Citibank may agree to begin reporting your monthly payments as on time so you start immediately improving your credit ratings. 3. The first payment on your plan may be slightly higher, but it may go lower. 4. They may also offer a match payment hardship program to select customers that you may or may not be eligible for. There are examples of them agreeing to match a first payment of up to $600. The reason they do this is to encourage the consumer to make a good large first payment. They may even make this available for more than one month, but you need to ask for it. 5. Your payments on the Citibank hardship program may be as low as 1.5% of the balance to begin with. Credit card hardship programs are similar to loan restructuring programs or workouts where the main goal is to help borrowers to avoid default on their debt. It is an agreement between the creditor and borrower where the borrower sets up a plan to pay off the amount affordable with him monthly and the creditor reduces the amount that the borrower owes, rate of interest charged on the debt or sometimes lowers the minimum monthly payment to the level that is affordable. Credit card hardship program help the borrowers to avoid default on their debt. Sometimes life throws us a curve ball. Life events like a divorce or an illness not only create physical or emotional upheaval, they also often lead to financial hardship bills. Financial institutions are frequently faced with situations where good borrowers are tripped up because of circumstances beyond their control. As a result, many financial institutions, including credit card companies, have a hardship program to help customers tide over a rough spot. A hardship program is similar to a loan workout, which helps restructure your debt to prevent you from defaulting. A credit card hardship program is different from a Payment Protection Plan, which is a paid service that will take over your credit card payments in case of unexpected events. In a credit card hardship program, youd offer to pay a fixed amount that you can afford on your credit card each month. In turn, your credit card company might lower the interest rate charged on your credit card account, lower your monthly payments to a level you can afford, or agree to delay payments for six to twelve months to give you a chance to get back on your feet.citibank hardship programhardship program help

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