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Posted: 12:00 a.m. Friday, May 15, 2009

New relief program for those with credit card debt


The National Foundation for Credit Counseling has announced its new Call to Action initiative. This 60-month payment plan aims to help consumers who are struggling with credit card debt and may be facing possible bankruptcy.

Under the Call to Action initiative, the 10 largest credit issuers have agreed to modify the terms and conditions of their repayment policies. That means they may waive late and over-the-limit fees, in addition to reducing interest rates.

In general industry terms, this kind of arrangement is known as a debt management plan (DMP).

The goal here is to increase the chance that you'll pay off your debt instead of bankrupting out of it. But the lenders have not agreed to a reduction of your outstanding balance.

Participating credit card issuers include American Express, Bank of America, Capital One, Chase Card Services, Citi, Discover Financial Services, GE Money, HSBC Card Services, U.S. Bank and Wells Fargo Card Services.

Keep in mind that not everyone will be eligible to participate in Call to Action. Visit NFCC.org or call 800-388-2227 for more details to see if you qualify.