Macy’s has played a prominent role in American retail history and culture. Founded in 1858, Macy’s stores existed well before the credit card was invented. Famous for its presence in New York City and their Thanksgiving Day parade, Macy’s has also been a popular place to shop. From clothes to shoes to jewelry to home goods, this chain offers various items for their customers to charge on their Macy’s credit card.
But that shopping has put some of their consumers in debt. And for some, high monthly payments and interest rates have created severe financial hardship. If you find yourself in this situation, you certainly don’t stand alone.
What are your options to pay back your Macy’s credit card debt?
If you find yourself with an overwhelming amount of credit card debt, a hardship program can help. Facing a large amount of credit card debt can be scary. Undoubtedly, it’s a constant reminder that we messed up. And chances are neither your formal education nor your parents prepared you on how to handle this situation.
With the average interest rate of department store cards currently hovering above 30%, paying off this debt on your own presents a great challenge.
The first thing that must be done is putting a stop to overspending. Each time we use a credit card we are likely purchasing something we can’t afford. Create a detailed budget instead. Outline all income and all expenses. Revisit this budget periodically and make revisions. Increase income. And decrease expenses.
Macy’s Hardship program
If you find yourself struggling with retail store and/or credit card debt, hardship programs can help. To find out if you qualify, contact Macy’s directly. Provide as many details as possible about your financial situation. Be prepared to provide them with your monthly income and expenses. Telling them that you are simply looking for a lower interest rate and payments probably won’t work. You must have a compelling hardship. Without a doubt, job loss or medical emergency are prime examples.
Any concessions granted by Macy’s will likely be temporary. A lower interest rate will usually 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 a great option. Macy’s works very well with these nonprofit organizations. They reduce interest rates substantially. 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 Macy’s clients for nearly a decade
DebtWave has worked with various credit card accounts, including Macy’s, since 2002 helping clients pay off debt at lower interest rates. Most clients add other credit cards to their plan such as American Express, Citibank and Target 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.
DebtWave conducted a study during a 15 year period (2010 through 2024) which they enrolled 1,438 Macy’s accounts onto their program. As a result, they discovered that 1,085 clients successfully paid their balance in full. And 46 clients are still actively paying down their debt.
Here are some additional stats from these clients:
The Dream of Getting Out of Debt on Your Own is Obtainable
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 succeed in reducing your rates below 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.