How to Settle Credit Card Debt with Citibank

Sarah Edwards | December 27, 2022

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.

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.

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.

SoloSettle makes negotiating easy by providing a structured process.You can use our 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:

“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.

SoloSettle really saved me a ton of time and heartburn and kept me from having to be my own lawyer in court.”

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.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Colorado
• Connecticut
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Minnesota
• Mississippi
• Missouri
• Montana
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New Mexico
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• Rhode Island
• South Carolina
• South Dakota
• Tennessee
• Texas
• Utah
• Vermont
• Virginia
• Washington
• West Virginia
• Wisconsin
• Wyoming

Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.

• Absolute Resolutions Investments LLC
• Accredited Collection Services
• Alliance One
• Amcol Clmbia
• American Recovery Service
• Asset Acceptance LLC
• Asset Recovery Solutions
• Associated Credit Services
• Autovest LLC
• Cach LLC
• Cavalry SPV I LLC
• Cerastes LLC
• Colinfobur
• Covington Credit
• Crown Asset Management
• CTC Debt Collector
• Cypress Financial Recoveries
• Delanor Kemper & Associates
• Eagle Loan of Ohio
• Educap
• Estate Information Services
• FIA Card Services
• Forster & Garbus
• Freshview Solutions
• Fulton Friedman & Gullace LLP
• Harvest Credit Management
• Howard Lee Schiff
• Hudson & Keyse LLC
• Integras Capital Recovery LLC
• Javitch Block
• Jefferson Capital Systems LLC
• LVNV Funding
• Mannbracken
• Mariner Finance
• Medicredit
• Michael J Adams PC
• Michael J Scott
• Midland Funding LLC
• Mullooly, Jeffrey, Rooney & Flynn
• Mountain Land Collections
• MRS Associates
• National Collegiate Trust
• Nationstar Foreclosure
• Northstar Capital Acquisition
• NCEP LLC
• NRC Collection Agency
• OneMain Financial
• Palisades Collection LLC
• Pallida LLC
• Paragon Revenue Group
• Pinnacle Collections Agency
• PMAB LLC
• Portfolio Recovery Associates
• Provest Law
• PYOD LLC
• Reunion Student Loan Finance Corporation
• Revenue Group
• Regents and Associates
• RSIEH
• Salander Enterprises LLC
• Second Round Sub LLC
• Security Credit Services
• Sherman Financial Group
• Suttell and Hammer
• T-Mobile
• Transworld Systems
• Tulsa Teachers Credit Union
• UCB Collection
• Velo Law Office
• Velocity Investments
• Waypoint Resource Group
• Weinberg and Associates
• Wolpoff & Abramson

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

• Bank of America
• Capital One
• Chase
• Credit One Bank
• PayPal Synchrony Card
• SYNCB/PPEXTR
• Synchrony Bank
• Target National Bank
• Wells Fargo

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court