Citibank Settlement Offers 2010 Is Like A Welcome Move

Citibank settlement offers 2010 is like a welcome move

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Ask Bill

In April 2010 Citibank began sending out settlement letters once there was a delay of 120 days in the payments with an offer of settling 40% of the money owed. Citibank settlement offers 2010 is a welcome move for most people who have been attuned to the perception that until recently Citibank was among the most difficult lenders to reach a settlement with and they were also known for not selling delinquent debt. Unfortunately most Citibank customers have not had a clean experience of getting their debts closed upon paying up 40% of the total outstanding. Some individuals have threatened to sue the bank, but in most cases Citibanks internal recovery division handles outstanding debt and does follow procedures, hence it is important to determine the facts before jumping to conclusions. Citi, the leading global financial services company, has approximately 200 million customer accounts and does business in more than 140 countries. Through Citicorp and Citi Holdings, Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management. Every impacted customer needs to make his or her own decision whether to accept the offer or not. While assessing the situation and the offer each customer needs to consider all risks related to accepting or declining the Citibank settlement offers 2010.

Credit settlement involves a multitude of options, with the most popular ones being consolidation of unsecured debt, followed by debt workout. A credit card debt workout is a negotiated settlement of credit card debt. For example if you owed $5,000 on a credit card and made an agreement with the credit card company to pay $2,000 instead of $5,000 as settlement in full on the debt, this would be a credit card debt workout. Firms who perform this type of work may identify themselves as debt management, debt reduction, debt relief, debt workout, debt settlement or a host of other names inferring they help with debt even sometimes including debt consolidation. However the specific term debt consolidation is a reorganization of the debt through a credit counselor or taking a debt consolidation loan to pay off the debts in full. When those with credit card debt achieve debt relief by paying less than they owe, it is called debt settlement. Creditors agree to debt reduction arrangements where they feel a settlement of the debt will be in their best interest. In most cases they come to this conclusion because the person requesting the debt negotiation appears to be a legitimate candidate for bankruptcy. Knowing that in most bankruptcy cases they would receive nothing, they opt to take a discounted settlement on the debt rather than receive zero dollars in a chapter 7 bankruptcy. The consumer gets debt relief, the creditor get some money and everyone ends up better than their worst options. Hence while seeking credit relief from your outstanding debt with Citibank, it is important to look at credit settlements and debt workouts as options. Citibank has been offering a range of solutions to its credit card customers who have been delaying in paying up their dues. One such solution is an offer of 0% interest rate on outstanding debt for 12 months provided the individuals set up monthly payments. Another option Citibank is providing is for a reduction of outstanding to 80% subject to payment within the next 120 days. Of course the other option is to work with collection agencies and obtain their help to reduce your debt with Citibank subject to early settlement. Credit debt relief and settlement negotiation will yield higher savings with any creditor, whether you do it yourself or hire a company to do it for you. Citibank in the past was very reluctant to give out great settlements, but things are changing and they are becoming more amicable. citibank settlement offers 2010credit settlementcredit debt relief

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