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Wells Fargo Debt Consolidation

I Am Overwhelmed with Credit Card Debt, Especially My Wells Fargo Accounts. Is There a Wells Fargo Debt Consolidation Program that Can Help Me?

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.

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Wells Fargo Logo | Wells Fargo Debt Consolidation

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

If you are struggling with debt, contact one of Bills.com's pre-screened debt providers for a free, no-hassle debt relief quote.

Self-Help

Contact Your Creditors

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 Debt Consolidation Loan Options

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.

  • Line of Credit: Lines of credit are available from $3,000 to $100,000. According to the Wells Fargo website, the Annual Percentage Rate (APR) for a personal line of credit ranges range from 7.00% to 19.75%. The website states that this rate is accurate as of July 31, 2013. Wells' line of credit interest rates are variable and subject to change. You will pay a a $25 annual fee.
  • Personal Loan: Unsecured personal loans have fixed rates that depend on the amount you borrow, your credit and income, and the state in which you live. Loans are not available in every state. The length of time you have to repay the loan affects your rate. Loan decisions are made quickly. You can often receive money as soon as one day after you apply, if you are approved. There are no pre-pay penalties if you pay the balance of early.
Shop around for a personal loan by checking with a Bills.com unsecured loan partner. If you don't have good credit, rates can be high. Make sure you can afford the monthly payment.

Balance Transfers

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.

Collections Process

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:

  • Most creditors first attempt to collect a debt internally. If not successful, they refer the account to an outside collection agency or a law office for collections.
  • Some creditors have in-house legal departments to collect on the debt, though that is becoming less common.
  • In general, accounts are referred for legal collections after they are somewhere between six and nine months delinquent, depending on the creditor.
  • Your recent activity on your account can affect the collection process. Some creditors pay close attention to your specific account activity, when deciding whether to pursue legal collections. For instance, large recent purchases may cause a creditor to pursue collections more aggressively.
  • Eventually, your account may be sold to a debt collector. Creditors that are unable to collect anything after your debt has been contracted to a law office usually sell the debt to a debt purchasing collection agency. This frequently happens approximately 18 to 24 months into the collection process.

Outside Help

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.

Wells Fargo Credit Cards & Credit Counseling

If you enroll a Wells Fargo account in a credit counseling's debt management program, you should expect:

  • A monthly payment that is 2.00% of your account balance
  • A minimum monthly payment of $15
  • An interest rate of at least 7%. If your rate is at or below 7%, not only is there is no reduction, but your rate will be increased to 7%. Different accounts can have different rates. Enrollment rates are subject to change, so what is available today may different tomorrow.

Wells Fargo & Debt Settlement

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 Fargo's Collection Process and Legal Action

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:

  1. They begin to offer settlements when the account is in pre-charge off status. Usually about 3 to 4 months after the last payment was made.
  2. Some accounts that are severely delinquent have been sent to a third party.
  3. An account goes to legal based on the customer's credit report and assets. Large balances are much likelier to end up in legal collections.
  4. Different accounts can be assigned to different departments that apply different guidelines. It can take multiple calls before you reach someone with the proper authority to settle your account.
Different factors influence how aggressive your creditors are, when they try to collect on your debt, including: the state you live in, the assets you own, and state-specific collection laws. Creditors are less likely to engage in legal collections, for example, in states that don't allow for wage garnishment, such as Texas, Pennsylvania, North and South Carolina.
Bills Action Plan
  • Stay in contact with your creditors. Let them know if you're going to miss a payment.
  • Open all your mail from your creditors. Ignoring a problem will not make it go away.
  • Review all your debt relief options, before making a decision, so you can weigh the pluses and minuses that come with each solution.
  • Check out the Bills.com no-cost Debt Coach tool. Debt Coach allows you to easily go over all your available debt options, based on the goals and priorities that you specify, giving you a realistic estimate of how long it takes to get out of debt and what your total costs will be.
  • Image licensed from Creative Commons and provided by Ron Cogswell

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