Struggling to pay off your credit card debt? Apply for an amnesty under Interbank Debt Relief Program

One of my most read article here in the blog is about the THINGS I DID TO SETTLE MY CREDIT CARD BILLS.

The other day, one reader mentioned about the credit card amnesty program also known as debt restructuring program under Bangko Sentral ng Pilipinas, member-banks of the Credit Card Association of the Philippines (CCAP), and BDO Unibank, Inc. called the Interbank Debt Relief Program (IDRP) to help delinquent credit cardholders settle their overdue accounts.

Since it was almost a decade since I cut and stopped using my credit cards, I am not updated on what’s the latest program on how to settle delinquent accounts anymore. I’m thankful to this reader for pointing this out, nadagdagan ang kaalaman ko (which of course I’m happy to share with you).

First of all, you might ask what is Interbank Debt Relief Program (IDRP)? According to Moneymax, the IDRP is a repayment plan that consolidates and restructures a person’s credit card debts. This credit card amnesty program in the Philippines offers more affordable monthly amortizations with lower interest rates, longer repayment terms, and a more convenient way to pay off credit card bills. It won’t ruin a cardholder’s credit history, according to the CCAP.

What’s nice with this program is that they provide:

• Low interest rates ranging from 0% to 1.5%
• Long repayment terms ranging from 12 to 16 months (Extended up to 10 years for extreme cases of credit card debt)
• Same interest rates and repayments terms applied to all unpaid credit card accounts

To know if you are qualified, here are the requirements:
(info via: www.ccap.net.ph)

• Customer should have at least 1 credit card from 2 participating banks
• Credit card accounts must be at least 6 months old with an outstanding balance of at least P10,000 per Card and with total combined obligations of at least P100,000 with all Card Issuers.
• Customer is not allowed to apply on a selective basis. Applicant should declare all Credit Card outstanding balances. Validation will be done through credit bureau information and / or confirmation from CCAP member banks.
• Customer may be required to submit proof of financial distress or an indication of card payment difficulty.
• Combined age of the customer and end of tenor of the restructured accounts must not be more than 65 years. Otherwise, a co-maker/guarantor is required. A co-maker is also mandatory if customer has no source of income or if the current income is not sufficient to cover the monthly amortization of the restructured accounts. Financial status of the co-maker/guarantor will also be assessed.
• The Banks have an option to disapprove application due to moral hazard and if customer has shown abuse and irresponsible usage of Credit Cards.  Nature and types of transactions will be reviewed.
• Banks may disapprove the application if there were purchases on the card of luxury items, showing extensive travel and/or gambling related.
• Customer has not previously applied for the same program in the last 6 months.
• Customer has not filed legal actions such as Petition for Insolvency or Rehabilitation
• Foreigners are excluded from the Program.  Citizenship and residency of the applicant will be evaluated.

What are the requirements to avail this program?

• A completely filled-up application form
• Statement of income and expenses
• ITR or last 3 months payslip or COE (if employed), latest ITR or audited FS (for self-employed). If applicant has no source of income, he/she will need to find a co-maker who can help him/her pay for the amortization on a monthly basis. The co-maker will also need to sign an agreement.
• Proof of other source of income
• IDRP Payment Agreement Contract including Terms & Conditions signed by you and your co-maker, as applicable.
• Debtor’s Consent Form, Promissory Note, or Post Dated Checks
• One valid government ID including that if the Co-Maker if required.

Banks That Provide Credit Card Amnesty in the Philippines

• Asia United Bank
• Bank of Commerce
• Bank of the Philippine Islands
• BDO Unibank, Inc.
• China Banking Corporation
• East West Banking Corporation
• Equicom Savings Bank
• Hongkong and Shanghai Banking Corporation Ltd.
• Citibank, N.A. Philippine Branch
• Maybank Philippines, Inc.
• Metrobank Card Corporation
• Philippine National Bank
• RCBC Bankard
• SB Cards Corporation
• Standard Chartered Bank
• UnionBank of the Philippines

How can you apply for the program?

• Just contact any bank (those listed above) where you have a Credit Card account to apply. The Bank with the highest combined eligible outstanding balance for IDRP will act as the Lead Bank and will contact the Customer to discuss the arrangement and process the application for review and approval. Approval requires compliance to the guidelines and conditions of the IDRP and submission of necessary documents.

NOTE: Please keep in mind that once you are approved, you cannot miss any monthly amortization because your amnesty program will be void/null/cancelled. Yes kahit isang month lang ma miss mo, wala na yung program. Sayang!

If you are reading this, I know you are trying to settle your obligations and clear your name, I want to say CONGRATULATIONS! for starting to do something by looking for a solution to your current situation.

Trying to have a debt free life is hard, but believe me, I’ve been there and once you clear them all, life will be easier and more beautiful.

I can’t wait for you to say “Finally, I am DEBT FREE!”