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.
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 offers a number of different credit cards.
Speak With a Certified Debt Consultant, Now.
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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 maintaining open communication is smart. Call the customer service department 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. If you are told no, ask to speak with a supervisor. This won't guarantee success, but there are times when the general customer service representative doesn't have the authority to put you in a hardship program and a supervisor does.
Wells Fargo Debt Consolidation Loan Options
Wells Fargo offers unsecured personal loans and personal lines of credit. You need strong credit to qualify, and it takes excellent credit to qualify for the best rates available. To qualify, you also have to show that you have enough income to afford to repay the loan. Approvals are granted quickly to qualified borrowers who submit a full application and provide any requested documentation in a timely manner. It is possible to apply for a loan and receive the funds the next day.
- 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 10.25% to 21.75% APR. The website states that this rate is accurate as of October 18, 2018. If you have a checking account and make your payment each month automatically from your account, you may qualify for a .25% interest rate reduction. Wells Fargo's line of credit interest rates are variable and subject to change. You will pay a a $25 annual fee.
- Personal Loan: Wells Fargo offers unsecured personal loans from $3,000 to $100,00. These are fixed-rate loans. As of October 18, 2018, personal loan rates range from 7.49% to 24.49% APR. It is possible to get an interest rate deduction of .25% if you have a Wells Fargo checking account and your loan payment is taken from your account each month automatically. Your rate depends on the amount you borrow, your credit rating and history, your debt-to-income ratio, and the state in which you live. Loans are not available in every state. The length of time you have to repay the loan also affects your rate. Loan decisions are made quickly. There are no pre-pay penalties if you pay the balance of early.
Would You Benefit from a Debt Consolidation Loan?
Bills.com makes it easy to shop for a bill consolidation personal loan. Start by filling in your credit score, zip code, loan purpose, and the amount of loan you need. Check out different offers and click on the appropriate ones.
If your credit is in good standing and you have balances on 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. As of October 18, 2018, Wells Fargo is offering at least one credit card to which you can transfer balances at 0% interest for 18 months. There is a fee of $5 or 3% of the amount you transfer, whichever is greater. After the 0% period ends, After that, your APR will be 17.49% to 26.99% APR,depending on your creditworthiness. Your APR will vary with the market based on the U.S. Prime Rate.
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.
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.
In Collections? Learn What a Creditor Can Do in Your State.
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 Navigator tool. The Debt Navigator helps you to easily review all your available debt options, based on the goals and priorities that you specify. It will give you a realistic estimate of how long it takes to get out of debt and what your total costs will be for each option.
Image licensed from Creative Commons and provided by Ron Cogswell
Did you know?
If you are struggling with debt, you are not alone. According to the NY Federal Reserve total household debt as of Quarter Q4 2022 was $16.91 trillion. Student loan debt was $1.60 trillion and credit card debt was $0.99 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Collection and delinquency rates vary by state. For example, in Kentucky, 16% have student loan debt. Of those holding student loan debt, 10% are in default. Auto/retail loan delinquency rate is 4%.
Avoiding collections isn’t always possible. A sudden loss of employment, death in the family, or sickness can lead to financial hardship. Fortunately, there are many ways to deal with debt including an aggressive payment plan, debt consolidation loan, or a negotiated settlement.
Thanks for the insights on Wells Fargo. Sounds like being deliberate and proactive is the best path forward on most debt consolidation strategies!