Unless you are an avid shopper with a lot of credit cards, you have probably never heard of Comenity Bank. But chances are pretty good you have heard of stores like Victoria Secret, Ulta or Bealls. These three big store names, along with another 130+ retail stores, use Comenity Bank as their credit card issuer.
Comenity Bank is a subsidiary of Bread Financial, a financial services company that offers payment, lending, and savings products. They possess a 6.47% market share (5th highest) of all the retail store credit cards’ purchase volume last reported in 2022 according to WalletHub.com.
As a result of this large purchase volume, their consumers carry large amounts of credit card debt.
What are your options to pay back your Comenity Bank credit card debt?
Facing a large amount of credit card debt can be scary. It’s a constant reminder that we messed up. And chances are neither your formal education nor your family prepared you on how to handle this situation.
There are many options to consider when trying to pay back debt. But the one thing that must be done regardless of what option you select is stop overspending. Each time we use a credit card we are likely purchasing something we can’t afford. Put an end to using cards. Especially when it comes to unnecessary items from Ulta and Victoria Secret.
Create a detailed budget outlining all income and all expenses. Revisit this budget periodically and make revisions. Increase income. And decrease expenses.
Comenity Bank Credit Card Hardship program
If you find yourself struggling with credit card debt, hardship programs can help. Contact Comenity Bank directly and let them know your personal hardship. Provide as many details as possible about your financial situation. They will likely ask about your monthly income and expenses. Telling them that you are simply looking for a lower interest rate and payments won’t suffice. You must have a compelling hardship such as job loss or medical emergency to qualify.
Any concessions granted by Comenity will likely be temporary. Unfortunately, a lower interest rate will likely last less than 12 months. Take advantage of that time and attack your debt with extra payments. Some creditors might reduce your credit limit or even close your card once they approve you on their hardship plan.
If you have no luck getting concessions or want more long-term benefits, credit counseling is your next best option. Comenity works very well with nonprofit organizations offering their clients interest rates usually below 10%. Payments typically get lowered as well. Your credit card will be closed on their debt management program. This can be viewed as a good thing for some as the temptation to continue using the card is eliminated.
DebtWave has been helping Comenity clients for more than 20 years
DebtWave has worked with various credit card accounts since 2002 helping clients pay off debt at lower interest rates. Most clients add other credit cards to their plan such as Citibank and American Express accounts. Clients make payments via ACH either monthly, semi-monthly, weekly or biweekly and then DebtWave disburses payments to their creditors. Most clients complete their program and become debt free in less than 5 years. DebtWave has a 68% successful completion rate.
From 2010 to 2024, DebtWave enrolled nearly 10,000 Comenity accounts onto their program. Many clients benefitted from lower interest rates along with a reduction in monthly payments. As a result, the average client paid off their account in 42 months.
Here are some additional stats from these clients:
The Dream of Getting Out of Debt on Your Own is Alive
Paying back your credit card debt seems unrealistic. But it has proven to be achievable by thousands of DebtWave clients. If you would rather tackle the debt on your own, it can be achieved. Create your own plan. The first step is lower interest rates. High interest rates (25-30% APR) on credit cards make it challenging. This would require you to significantly increase your minimum payments (at least 2x) to make progress.
If you have your rates reduced to less than 10%, then use a payoff calculator or google spreadsheet to create a plan. Find ways to increase income and reduce expenses. Stay motivated and refrain from using cards again. Build an iron clad budget that accounts for all expenses.
What other stores use Comenity Bank?
Comenity issues credit cards for the following brands:
- Ann Taylor
- Avenue
- Bed Bath & Beyond
- Big Lots
- Boscov’s
- Eddie Bauer
- Express
- Forever 21
- Game Stop
- Kay Jewelers
- Pier 1
- Wayfair
- Zales
If you are struggling with retail store credit card, seek credit counseling or create a DIY Debt Management Plan.