—>Compared to what some other banks and card companies are doing to reduce their exposure to debt, we guess Citibank's cash back offer isn't that bad—it's sort of a "let us help you help yourself get rid of your debt" scheme. It's funny, however, if only because it's such an elaborate way to get customers to self-select for a reduction in credit.

Here's the offer Craig received today:

Now you can earn cash back in the form of a statement credit simply by paying above the minimum amount due on your account.

Paying above the minimum amount due on any of your next 4 monthly billing statements can earn you a statement credit equal to 20% of the amount you paid over the minimum amount due. You can earn up to $550 in the program.

How it works:

• The ability to charge on your account will be temporarily suspended until your statement credit is posted.
• Upon receiving your statement credit, your credit line will be decreased by the total amount paid over the minimum amount due, plus the amount of your statement credit.
• Timely payment of at least the minimum amount due is required on all billing statements before earnings are credited.
• Earnings will be credited to your account in one lump sum within 3 billing statements after successful completion of the program.

We get the part about putting the card on hold during the program; otherwise the entire plan could be rendered moot by a single charge. But the part about reducing your credit limit by the amount you paid extra seems like a random way to penalize customers for taking advantage of the offer. At least you'll get paid something for it, though?

(Photo: boboroshi)