Hardship programs

[queenmum]

To make a long story short... things have changed and we are having some difficulties paying all our bills. For awhile we were using credit cards to make it happen and now that the cards are close to maxing out we cannot do it anymore. We are looking to putting some of my DH's cards on hardship programs to try and help. We have never been late, yet. I do not want to go late, but is that required to get on the programs?? This is stressing us out!!

[slickman212]

Believe it or not, you probably have to be late, and get blacklisted before you can get accepted. Good news is you can probably do it 16-29 days late, and before it gets a 30 day ding on your personal report. If it's a biz account, you'll get a 1-30 day late on EQ biz.

[queenmum]

I am nervous about being late and then having them raise the rates to default levels only for them to tell me no on the hardship.

 

Anyone done the program with Citi or Chase?

 

Trying not to totally destroy credit.

[cardcardinsider]

I am nervous about being late and then having them raise the rates to default levels only for them to tell me no on the hardship.

 

Anyone done the program with Citi or Chase?

 

Trying not to totally destroy credit.

 

 

Call to Citi.

 

They have hardship programs for accounts that are NOT pastdue. The APR go to 0-5.99% typicaly. The accounts are closed by the bank. The payment amounts are typically 1% of the current balance on the account. 20,000 balance would be a $200 payment.

[queenmum]

Thanks, I am going to have him try to call today, but have feeling this dept. does not work weekends. The program you just mentioned would help tremendously! Hope it works!

[queenmum]

Just wanted to update.. Was able to get at least one citi card into program, have to call on the other. It is 1% payment and 0% interest for a 12 months. It's a start! Going to try with Chase now....

[breeze]

OP, Did they tell you what happens after the 12 months is up, or will this program pay off the balance in your situation.

[queenmum]

Checking on that now, he did not agree to it yet. Can you ask them to run the 0% longer or do you renew the program after a year?

 

Chase took the balance spread it over 5 years at 6%. Closed the account. The rate was 17% so that is 11% less and at least it will be gone.

[breeze]

Wow! 17% for a hardship program? That's tough.

[breeze]

I'm going to move this to the credit counseling, DMP forum, because we also cover payoff plans directly from the card companies, too.

[queenmum]

Wow! 17% for a hardship program? That's tough.

 

No, no it was 17%, now it is 6% for the 5 years.

[breeze]

OIC

[ts8586]

Checking on that now, he did not agree to it yet. Can you ask them to run the 0% longer or do you renew the program after a year?

 

Chase took the balance spread it over 5 years at 6%. Closed the account. The rate was 17% so that is 11% less and at least it will be gone.

 

Queenmum (and anyone else with experience), how much info did Chase want? I'm about to do the same thing with them. I've got a good rate (3.99% for life), but they just jacked my minimum payment from 2% to 5%, like they did with many others.

 

Any advice you'd give before I try my luck?

[i8thegreenbean]

Checking on that now, he did not agree to it yet. Can you ask them to run the 0% longer or do you renew the program after a year?

 

Chase took the balance spread it over 5 years at 6%. Closed the account. The rate was 17% so that is 11% less and at least it will be gone.

 

Queenmum (and anyone else with experience), how much info did Chase want? I'm about to do the same thing with them. I've got a good rate (3.99% for life), but they just jacked my minimum payment from 2% to 5%, like they did with many others.

 

Any advice you'd give before I try my luck?

 

I just did this 20 minutes ago. Look for my other thread in this room for the # I called, the number on the back of the card was of no help.

 

Account closed, 5 year repayment plan, 6% interest---lowered from 18%.

 

I had to provide: Salary, Mortgage, Auto loans, Minimum Credit Card payments. I generally guesstimated on the minimum card payments, as I didn't know the exact amount off the top of my head, I definitely understimated though.

[scottso]

Do other CC companies, specifically Citi and BOA, offer a program like this?

[smartashjake]

I'm not sure about BOA or Citi, but Juniper (my statement came today and it now says Barclays) does. I did it about 4 months ago, it cut down the payment, my APR is 5.90% for the 12 months they gave me, but after the 12 months on the hardship program, it's back to my old payment and my old rate.

[ravrunner]

going to try to do this with my cards now?

 

i'll keep you guys updated!

[ravrunner]

Just did this we citi cards 5 minutes ago. I got the 12 month deal with 0% interest.

 

I had a hard time deciding on something and maybe someone can help me out before I do this on my other cards:

 

they were giving me 60 months no interest with a higher payment monthly, but it would close the account indifinetly. With the 12 months I have a chance that they can offer to open it again.

 

My question is which will hurt my credit score the most? they reporting it will take 5 years to pay the balance off or a short 12 month period of payment plan.

 

After the 12 months my interest will go back to 13.99%.

 

Any thoughts?

[21places]

Bump.....

[thisisme]

Just did this we citi cards 5 minutes ago. I got the 12 month deal with 0% interest.

 

I had a hard time deciding on something and maybe someone can help me out before I do this on my other cards:

 

they were giving me 60 months no interest with a higher payment monthly, but it would close the account indifinetly. With the 12 months I have a chance that they can offer to open it again.

 

My question is which will hurt my credit score the most? they reporting it will take 5 years to pay the balance off or a short 12 month period of payment plan.

 

After the 12 months my interest will go back to 13.99%.

 

Any thoughts?

 

I just called Citibank and they basically told me they couldn't do anything for me because my account is current. Oh, wait, he did help me by telling me to pay my account down to a manageable level.

 

I called the number on the back of the card - did you use a diff phone number? What did you say to them that they gave you that option?

[ch46]

Just curious as to which department at Citi you spoke with regarding this? I just got off the phone with Citi and spoke to a manager and they said they could lower my interest rate from 29.9% down to 14.9% and close the account. I inquired about the 60 months/0% payment plan that I had read about on here and they said they knew nothing of it.

[cristina47454]

I find this thread so interesting. Several months ago, I called BofA to inquire about a payment plan bcs I kept getting literature for it (even though I was current and it was the one cc of mine that had a good ratio). The end result was that they put me on the plan without my consent, dropped my limit like a bomb and closed the account. I was LIVID. In the meantime, it looks like almost all the cc companies are chasing limits and rate jacking and as though these payment plans are actually worth looking into.

 

Seems like all the rules are changing - is it possible that in light of the fact the cc companies are slamming EVERYBODY and so many people are closing accounts that the repercussions of high utilization (due to reduced limits), our oldest cards closing (and our history not being as aged), etc will not be nearly as painful once the dust has settled?

Edited November 16, 2009 by cristina47454

[ladyran]

Did you get these in writing or at least record the call? Hooters told me of their plan, I gave them the info they requested, they said I qualified and I asked for it in writing. I recorded the call. When I received the paperwork it clearly said that the rate was only good for 2 months and then it would go back to the original terms. It also said I would be reported to the CRAs as in a payment program.

[bbatman]

Do other CC companies, specifically Citi and BOA, offer a program like this?

 

 

I am in this program for BAC. In 3/2008, had a balance of about 3100-, a lot of which were fees and interest. I made arrangements to shut down the card and pay an amount each month. My interest was and is capped at 4.25%. (Was at 29.99%). I can set up electronic payments over the phone or go online and pay. At 4.25%, it's possible to see a lot of progress in a short time. Staff was pretty helpful in setting this up. I didn't call a number on the card--it was one of the other departments--I hadn't paid for a few months, and was getting tired of running around and hiding things. Down to 850- right now.

 

PM me if you want the phone number, I think the office is in Virginia Beach or the vicinity.

[youngwidow]

I have never been late on anything and I was able to get into hardship programs with the following CC

 

(my husband died back in Feb- I was only 31, no life ins, tons of debt (charged by him in my name)

 

1- Citi bank- 5% for 9 months- Card NOT closed- (but is now b/c they want to raise me to 29.99% after Jan when the promo is up)

 

2- Citi Flex line of credit- 0% for 12 months- closed

 

3- BOA/MBNA- 5% for 5 years (pays off balance)- closed

 

4- Amex- 0% for 6 months on Blue card - Card NOT closed

 

Amex plat. card- 0% for 6 months- 9.99% after that - my monthly payment pays off my balance in 12 months- card NOT closed

 

5. GE money line of credit- cut my interest rate in half for 6 months- closed for the 6 months