How to Settle Credit Card Debt with Citibank (2024)

Table of Contents
Settle debt with Citibank. How can I pay off my Citibank debt? Consolidate a Citibank debt Settle your Citibank credit card debt What should I do if Citibank is suing me for unpaid debt? Use SoloSettle to settle your credit card debt with Citibank Settle debt with SoloSettle. What is SoloSuit? Negotiate a Citibank debt settlement How to Answer a Summons for debt collection in all 50 states Guides on how to resolve debt with every debt collector We have answers Join our community of over 40,000 people. Resolve your debt with your creditor Settle your medical debt Guides on arbitration Stop calls from debt collectors Federal debt collection laws can protect you Get debt relief in your state Debt collection laws in all 50 states Statute of limitations on debt state guides Check the status of your court case How to stop wage garnishment in your state Other wage garnishment resources How to settle a debt in your state How to settle with every debt collector Other debt settlement resources Personal loan and debt relief reviews How to repair and improve your credit score How to resolve student loan debt Civil law legal definitions Get answers to these FAQs on debt collection How-to debt guides Learn more with these additional debt resources Not sued yet? Use our Debt Validation Letter. FAQs

Sarah Edwards | March 29, 2024

How to Settle Credit Card Debt with Citibank (1)

Legal Expert
Sarah Edwards, BS

Sarah Edwards is a professional researcher and writer specializing in legal content. An Emerson College alumna, she holds a Bachelor of Science in Communication from the prestigious Boston institution.

Edited by Hannah Locklear

How to Settle Credit Card Debt with Citibank (2)

Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

How to Settle Credit Card Debt with Citibank (3)

Summary: Owing a debt to Citibank can cause serious stress, but you have options. Consider increasing your monthly payments to pay off your Citibank debt faster. If you don’t have the funds to do that, you can also consider a debt consolidation loan to simplify managing your payments. Finally, if you’ve been sued for a debt by Citibank, you can settle the debt by responding to the lawsuit, sending a settlement offer, and signing a settlement agreement.

Is your balance with Citibank keeping you up at night, causing stress about what your financial future holds? Are you unable to keep up with your minimum payments with the lender, or do you want to eliminate them so you can redirect your money toward meeting your basic expenses?

Citibank is one of the oldest banks in the U.S. Founded in 1812, it was one of the original banks of New York. It now operates nationwide and internationally in countries such as Mexico.

Citibank offers numerous financial services, including banking, mortgages, credit cards, and loans. Millions of people have accounts with Citibank, whether they use the company for banking or loans.

Despite its long history as a popular bank, Citibank’s BBB rating is the worst available: an F. Customers complain about the company’s policies of charging unauthorized fees and penalties and approving fraudulent transactions without notifying customers of abnormal activity.

If you’re tired of dealing with Citibank, you’re not alone. There are many alternatives available for eliminating your Citibank debt.

Settle debt with Citibank.

You can negotiate debt settlement at any stage of the collections process. SoloSettle makes it easy.

Settle with SoloSettle


How can I pay off my Citibank debt?

The ideal way to pay off your Citibank debt without hurting your credit score is by increasing your monthly payments. Rather than making the minimum payment, put all of your extra resources toward your Citibank obligation.

The more money you can pay toward your outstanding debt, the faster you’ll be free from Citibank.

Consider a Citibank customer with a $5,000 balance on their credit card. Their monthly minimum payment is 4% of their balance, or $200. Citibank charges them an interest rate of 18.9%, which compounds the outstanding amount.

The customer can expect to pay off their Citibank debt with minimum payments in just over 11 years. In all, they’ll pay over $3,000 in interest.

However, if the customer can add an extra $200 a month, their final payment toward the debt comes in 63 months, just over five years later. They minimize their borrowing cost and pay a more reasonable $1,200 in interest.

See Also
Citi | About UsCitibank Review (April 2024) | MarketwatchCredit card fees: How much they’ll cost you and how to avoid themHow to Avoid Bank Fees

If you’re not in a position to increase your Citibank monthly payments, debt consolidation can also help you manage your debt.

Consolidate a Citibank debt

If you have a good credit score and the means to repay a debt consolidation loan, you can consolidate your Citibank debt.

Debt consolidation is helpful for people who want to pay off high-interest credit cards and loans with a one-time payment. The consumer obtains a debt consolidation loan, which they use to repay the balances on all of their existing credit card debt.

Instead of making payments to multiple lenders, the consumer makes a single monthly payment to their debt consolidation creditor. The interest on a debt consolidation loan can vary from 0% to 15%, making it less expensive and more effective than paying multiple lenders.

However, someone who has poor credit will probably not be able to secure a debt consolidation loan.

If this is you, debt settlement may be your next best bet.

Settle your Citibank credit card debt

It is possible to settle your account with Citibank for less. You’ll need to have savings you can pull from to pay off a significant portion of the debt. It’s also best that you stop making your minimum payments for a period—typically three to six months—before attempting to negotiate a settlement.

If Citibank sees that you are not making your payments, you’ll likely start receiving calls from the bank’s representatives in an attempt to get you back on track with your loan. They may offer certain concessions, like lowering your interest rate or minimum payment.

Once the appropriate amount of time passes, you can ask for a settlement. Start your negotiations low so there is room for Citibank to counter your offer. Make your payment when you come to an agreement that works for you.

If you’re able to settle your debt with Citibank, make sure to get written confirmation of your agreement. You should also ask the bank to report your account as paid in full to the credit reporting bureaus.

What should I do if Citibank is suing me for unpaid debt?

When you do not attempt to repay your Citibank debt, the company may try to take you to court. However, reaching a settlement agreement is still possible. In fact, you can reach out to settle the debt at any stage of the lawsuit process. Here’s how.

Follow these three steps to respond to a Citibank lawsuit and settle your debt:

  1. File an Answer to the lawsuit.
  2. Send a settlement offer.
  3. Get the settlement agreement in writing.

Keep reading to learn more about these steps, or check out this video:

First, respond to the lawsuit by filing an Answer into the case and sending a copy to the opposing attorney. Your Answer should address each claim against you and state your reasons why you believe the debt is invalid.

Even if you’re not sure whether you can win in court, an Answer prevents Citibank from obtaining a default judgment against you, which further prevents wages garnishment and liens being placed on your property.

Responding to the lawsuit buys you time to negotiate a debt settlement and avoid losing automatically. You’ll still get your chance to state your case in court, even if you cannot reach a settlement agreement with the company.

Second, figure out the most you can afford to pay Citibank. If Citibank has a strong chance of winning its case against you, you’ll want to offer at least 60% of the obligation you owe. For instance, if your current balance is $2,000, you can offer Citibank $1,200 in a one-time payment to settle the amount due.

Once you know how much you can pay, send an offer. Your offer may sound something like:

“Dear Citibank debt collector, I would like to settle my debt with case number ____. I can offer a lump-sum payment of $1,200 to be paid within 90 days of settlement. Please only respond to this message with an acceptance or counter offer. I’m prepared to fight this matter in court and win. I’m also prepared to file an FDCPA complaint. This offer expires on XX/XX/XXXX.”

Citibank will likely reply to your message but may counter your offer with an amount of their own. If you cannot pay the amount the bank requests, you can attempt to explain your financial situation. Sometimes, creditors will give you some leeway, especially if you have significant hardships.

Third, get your debt settlement in writing once you reach an agreement with Citibank. Their written statement will protect you if the bank tries to collect the remaining debt in the future.

If you’re apprehensive about handling the settlement process yourself, SoloSettle can do it for you.

Use SoloSettle to settle your credit card debt with Citibank

SoloSettle, powered by SoloSuit, empowers you to negotiate and reach a debt settlement on your own.

Use the SoloSettle web-app to send and receive offers from collectors. It will draft offers for you and protect you from the potential lies and bullying of debt collectors. Most importantly, SoloSettle makes sure all of the proper legal language is included to protect your rights when communicating with the creditor or debt collector.

When a settlement agreement is reached, SoloSettle manages the settlement agreement documentation for you and protects your sensitive financial information from the collectors, preventing them from over-charging you.

Here are some of the benefits of using SoloSettle to settle your debts:

  • You can settle debts of any size with SoloSettle. Many debt settlement companies require you to have a debt over $15k.
  • SoloSettle actively attempts to settle your debt, whereas many debt settlement companies take a more passive role, waiting for settlement offers to come to them.
  • SoloSettle is offered by SoloSuit, a trusted brand and a legitimate company. Many traditional debt settlement companies are actual scams.
  • SoloSettle has legal defense built in with SoloSuit. While settling, you can use SoloSuit to block lawsuits if you need. Most debt settlement companies don’t provide legal defense; if you’re sued for a debt you are on your own.

Still not convinced? Check out this review from a real SoloSettle customer:

See Also
How to reduce transaction fees - Police Credit Union

Settle debt with SoloSettle.


"I'm very thankful for SoloSettle. Having a third party negotiate the settlement was instrumental in resolving this case and saved me from two giant headaches: 1) I didn't have to deal with the plaintiff's lawyer and 2) I didn't have to go to court. I also love that the payment was processed through SoloSettle. I was nervous about sharing my personal financial data with the other side, but SoloSettle protected that for me. I hope I never get sued again, but if I do, I would use SoloSettle again in a heartbeat." - Dan

Get Started


What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

Negotiate a Citibank debt settlement

Hiring a debt settlement attorney can be expensive. Luckily, you don't need an attorney to be able to settle your debt.

We wanted to learn more about how to negotiate debt settlement with Citibank collections, so we asked a debt lawyer to share some tips and tricks on how to settle with creditors and debt collectors. Here's what we learned:

  • Avoid threatening bankruptcy if you don't mean it, as this empty threat is often ineffective.
  • Paint a picture of your financial hardship to the creditors or their lawyers.
  • Show proof of your limited ability to pay, like being on Social Security, facing multiple debts, or having wage garnishments.
  • Make a realistic offer, considering they will likely counteroffer.
  • For junk debt buyers, settlements of 10-35% of the total debt are typical, while original creditors may accept 50-75%.
  • If you propose a payment plan, ensure it's realistic for your budget.
  • Be truthful about your financial situation, as creditors often have detailed information about you.

Watch this video for the full interview on debt settlement with a debt lawyer, John Skiba:

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

We have answers

Join our community of over 40,000 people.


You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.


Get Started


Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources

Not sued yet?

Use our Debt Validation Letter.


Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.


Let's Do It


How to Settle Credit Card Debt with Citibank (2024)

FAQs

How to negotiate credit card debt with Citi? ›

If Citibank has a strong chance of winning its case against you, you'll want to offer at least 60% of the obligation you owe. For instance, if your current balance is $2,000, you can offer Citibank $1,200 in a one-time payment to settle the amount due. Once you know how much you can pay, send an offer.

View More ›
What percentage will credit cards settle for? ›

FAQs. What percentage will credit card companies settle for? Credit card companies may settle for anywhere from 10% to 50% of the amount owed. It depends on several factors, including the credit card company and how delinquent the balance is.

View Details ›
Does Citibank offer payment plans? ›

Get what you love. Love how you pay.

With Citi Flex Pay, you can split up your eligible purchases and pay over time through simple monthly installments with a fixed APR.

View More ›
Does Citibank sell debt to a collection agency? ›

Keep in mind that Citibank is a creditor, meaning they have a collections department, but they're still the same agency. That being said, it's common for outside debt collection agencies to purchased charged-off Citibank accounts that have fallen so behind on payments, Citibank considers it a loss.

Discover More Details ›
Will credit card companies forgive debt? ›

The only way credit card companies are likely to forgive the full amount of your balances is if you file bankruptcy. However, there are other ways to get out of debt in a reasonable amount of time. For example, you may be able to have a portion of your credit card balances forgiven with a debt settlement program.

View Details ›
Can Citibank garnish my wages? ›

Credit card companies can garnish (take) your wages just like most other creditors. But before taking part of your pay, the credit card company must first sue you in court to get a money judgment and a court order directing your employer to deduct funds from your pay.

See Details ›
How can I legally get rid of my credit card debt? ›

Chapter 7 bankruptcy: This fairly quick legal process can wipe out your unsecured debts through what's called a “discharge.” Chapter 13 bankruptcy: Chapter 13 can also result in a discharge, but typically only after you complete a 3-5 year repayment plan.

See Details ›
What is the lowest a debt collector will settle for? ›

Typical debt settlement offers range from 10% to 50% of the amount you owe. Creditors are under no obligation to accept an offer and reduce your debt, even if you are working with a reputable debt settlement company.

Discover More ›
Does it hurt your credit if you settle? ›

Debt settlement can eliminate outstanding obligations, but it can negatively impact your credit score. Stronger credit scores may be more significantly impacted by a debt settlement. The best type of debt to settle is a single large obligation that is one to three years past due.

Learn More ›
Is Citibank good for bad credit? ›

The best Citi credit card for bad credit is the Citi® Secured Mastercard® credit card because it has high approval odds as a secured credit card. It is open to applicants with limited credit, but there are some online forum reports of consumers getting accepted with bad credit.

Discover More ›

How do I get my Citi credit card late payment forgiveness? ›

If you accidentally pay less than the minimum required payment or you miss your Citibank credit card due date entirely, you can always ask customer service to waive the late fee by calling 800-950-5114.

Keep Reading ›
What is the Citi Flex pay agreement? ›

With Flex Pay, Citi cardholders can choose the duration they prefer from the available options, typically between three and 48 months, on purchases of $75 or more. In general, the higher the purchase amount, the longer you'll have to repay—and the more repayment options you'll have.

Get More Info Here ›
Can you negotiate with Citibank? ›

Choose your debt amount

Settling with creditors is an effective, aggressive debt resolution strategy. Citibank has the reputation for a sharp negotiation policy. Consider hiring a debt settlement company to negotiate.

See More ›
What happens if you don't pay Citibank? ›

Yes, Citibank does charge late fees when cardholders don't make the minimum payment by the due date. The late fee for Citibank credit cards can be up to $41, though the late fee can never exceed the minimum payment amount thanks to the CARD Act of 2009. Or, you could apply for the Citi Simplicity Card.

Find Out More ›
What happens if a credit card company sues you and you can't pay? ›

You may lose the ability to dispute the debt, if you believe you don't owe it or that the amount is wrong, and depending on your situation and your state's laws, the creditor may be able to: Garnish your wages. Place a lien against your property. Move to freeze funds in your bank account.

Learn More ›
Is it possible to negotiate credit card debt? ›

Credit card debt typically comes with high interest rates and negotiations are often an effective way to reduce those rates. However, if you're having a hard time making ends meet, it may be time to reach out to a debt relief service for a potentially faster route to debt relief.

Learn More Now ›
Can I negotiate credit card debt after being sued? ›

You can negotiate debt settlement at any stage of the collections process, even after you've been sued by a credit card company.

Discover More Details ›
Top Articles
Fixed versus Floating Exchange Rates
What Is Translation Exposure? Risk Defined, With Example
Anthem Bcbs Otc Catalog 2022
Dunhams Tents
Villanova University Common Data Set
Some Questions In Cengagenowv2 Do Not Use Drop Down Menus
Be Well Organic Nails And Spa
Bradshaw And Range Recent Obituaries
How to Watch Patreon on TV – Repeat Replay
Korina Kova Stepmom Wants A Wedding
Spiked Crimson Spaulders
Rush E - virtual piano sheet - hard - Pastebin.com
Latest Posts
Different Types of Stock Trading in India
How to Identify the Best Type of Property for Airbnb
Article information

Author: Clemencia Bogisich Ret

Last Updated:

Views: 6516

Rating: 5 / 5 (60 voted)

Reviews: 91% of readers found this page helpful

Author information

Name: Clemencia Bogisich Ret

Birthday: 2001-07-17

Address: Suite 794 53887 Geri Spring, West Cristentown, KY 54855

Phone: +5934435460663

Job: Central Hospitality Director

Hobby: Yoga, Electronics, Rafting, Lockpicking, Inline skating, Puzzles, scrapbook

Introduction: My name is Clemencia Bogisich Ret, I am a super, outstanding, graceful, friendly, vast, comfortable, agreeable person who loves writing and wants to share my knowledge and understanding with you.