Target Corporation has a long history dating back over a century, starting with its parent company and evolving into one of the largest retail chains in the U.S. You can buy almost anything at one of their nearly 2,000 locations. From clothing to groceries to kitchenware to garden supplies.
But buyer beware when using your Target credit card to pay the bill. Many Target shoppers have accumulated stacks of credit card debt and are unsure where to turn for help. 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 Target credit card debt?
If you find yourself with an overwhelming amount of credit card debt, a Target 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 and use debit cards instead. Revisit this budget periodically and make revisions. Increase income. And decrease expenses.
Target Hardship program
If you find yourself struggling with retail store and/or credit card debt, a target hardship program can provide relief. To find out if you qualify, contact Target 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 Target will likely be temporary. A reduced 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 with Target, credit counseling is a great option. Target works very well with these nonprofit organizations. They reduce interest rates drastically. 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 Target Hardship Program clients for nearly a decade
DebtWave has worked with various credit card accounts, including Target, since 2002 helping clients pay off debt at lower interest rates. Most clients add other credit cards to their plan such as Chase, Bank of America and Walmart 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 2,625 Target accounts onto their program. As a result, they discovered that 1,916 clients successfully paid their balance in full. And 97 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. First, create your own plan. Next, lower your 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.