Credit Card Issuers Are More Open to Debt Management Plans
As a sign of the times an increasing number of credit card issuers have announced that they will be more open to working with debt management plans. There is no doubt that credit card companies have gotten bad press lately so perhaps this is an attempt to appear more customer friendly.
Regardless of their intentions, 10 major credit card companies have altered their attitudes when it comes to debt management. There is now a tiered system that will amongst other things, lower interest rates, waive fees and in some cases waive minimum payments.
The whole idea behind it is to help cardholders pay off high interest rate credit cards. Frankly it’s a smart move. The alternative is defaults where the credit card companies get nothing. That’s what they’re facing now in record numbers and it is killing their bottom lines.
Previously it was rather difficult to get approval for a debt management plan. But now, because of the hardships that millions are facing, the issuers have softened their stance. Now consumers, depending upon their income, may qualify for monthly payment plans of 1.75% or 2%.
It’s more or less a hardship program for people that are struggling. Those that qualify will be assigned a certified credit counselor that will help them establish a payment plan that they can afford.
It’s all about working within the confines of the individual’s budget to find a payment solution that is acceptable to both the cardholder and the issuer.
The credit card issuers currently participating in the program represent a veritable who’s who of the industry. They include American Express, Bank of America, Chase, Citi, Discover, GE, HSBC and Wells Fargo.
We think the program a good idea and we are betting that more credit card companies will be joining the ranks of those mentioned here. The concept is certainly very interesting then we will continue to follow it and keep you informed as to how it progresses.
Related Information:
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- Credit Card Issuers Getting Creative with Their Fees Credit card issuers are finding new ways to charge their account holder's fees...