I am overwhelmed by my debt, especially my credit card debt. My two biggest credit card debts are both with Wells Fargo. I have one WF card with over $8,000 and another with over $5,000. My total credit debt is about$30,000. I've cut all my expenses and used up all my savings. I no longer can afford to make my minimum payments each month. Late payments have lead to creditors hiking rates on some of cards to about 30%. I feel like I will never catch up. Is there a Wells Fargo debt consolidation program that would help me get out of debt? Please help. Thank you.
Thank you for your question about your Wells Fargo credit card debt and the best solution for your debt problems. Let's review your options for your solving your debt problems in general, the specific Wells Fargo debt consolidation options available, and some important information on how Wells Fargo deals with accounts that go delinquent.
Wells Fargo is a full service bank. They offer basic banking services such as checking and savings accounts. Wells Fargo has a mortgage department, and the bank offers personal loans and unsecured lines of credit. It also has a large credit card program
Any time that you feel you are not able to pay one of your bills, contact your creditor in advance. This doesn't guarantee that your creditor will be flexible with you, but but maintaining open communication is a smart choice. Call the customer service numbers and ask if they offer a financial hardship program. That may give you some temporary relief. Ask for an interest rate reduction or permission to make a smaller than normal minimum payment, so you can avoid a costly late fee or a major hike in your card's interest rate.
Wells Fargo offers unsecured personal loans and personal lines of credit. To qualify, you need to demonstrate strong credit and an ability to afford the required monthly loan payments.
If your credit is in good standing and you have balances on your any debts you are carrying a balance transfer is another possible debt consolidation solution. Make sure you understand the fees that come with the balance transfer and how long the low introductory rate lasts. Wells Fargo and other creditors offer balance transfers to qualifying customers.
If you default on any of your Wells Fargo accounts, or with any of your other creditors, and you are unable to work out a solution with them, you will end up in collections. Not every creditor treats all their delinquent accounts. Even the same creditor may treat individual customers differently. However, there are some basic strategies and practices that Wells Fargo and other creditors use when collecting on delinquent accounts:
If Wells Fargo or your other creditors are not willing to work with you, your best debt relief solution may be to work with a professional debt relief organization, such as a credit counseling firm or a debt settlement firm. Before you choose the right way to solve your debt problem, it can be very important to understand how your specific creditors work with their customers. That way, you can plan the most effective strategy for getting out of debt.
Bills.com's editorial staff has done extensive research to provide you with some specific facts about Wells Fargo and how it deals with accounts enrolled in debt relief programs.
If you enroll a Wells Fargo account in a credit counseling's debt management program, you should expect:
Debt settlement is an option to consider, if you are experiencing a serious financial hardship. Debt settlement is an aggressive form of debt relief designed to get you out of debt in 24-48 months. For the program to succeed, you need to make the monthly program payment, which is usually significantly less than the current monthly minimum payments that your creditors require.
Bills.com reviewed hundreds of settlements reached by professional debt settlement negotiators for the client's Wells Fargo accounts. The average settlement negotiated was less than 50% of the balance that the clients enrolled in the settlement program.
Individuals are certainly free to try negotiating settlements directly with their creditors. The fact is that many people lack the skills, nerve, and time to handle back and forth negotiations with debt collectors. For those people, hiring a reputable and experienced settlement company is a wise choice. Only hire a settlement firm that charges no up-front fees to enroll. Bills.com recommends that you select a debt settlement firm that is a member of the AFCC (American Fair Credit Council) and has debt consultants who have accreditation from the IAPDA (International Association of Professional Debt Arbitrators).
Wells is not known as the most aggressive creditor. Here are some facts about how Wells Fargo handles collections accounts, based on Bills.com research: