Credit Card Hardship Programs

There is nothing easy about finding or securing a credit card hardship program, although this is not how they got their name. Credit card hardship programs are designed by credit card companies as a way of ensuring some payments are made, even by account holders who have experienced extreme financial hardship.

A look at some of the typical features of a hardship program might serve to illustrate exactly why they are so difficult to get. Credit card companies have been known to;

• Reduce the minimum monthly payment due on your credit card statement by considerable amounts.

• Offer lower rates of interest.

• Waive late fees.

• Suspend future over-the-limit fees.

• Report favorable payment assessments to credit rating agencies.

It is no wonder then that credit card companies are not shouting this from the roof-tops. These companies are generally of the view that promoting the availability of hardship programs will encourage delinquency and so they severely restrict access to them by implementing strict eligibility requirements.

To access a credit card hardship program you would have to literally sabotage your credit score, so no right-thinking person would do this on purpose. However, if you are already on a rocky financial footing it pays to find out more about your options. If the following circumstances resemble your own then you could consider calling your bank to find out about the possibility of qualifying for a hardship program;

• You have a history of consecutive missed payments.

• You have lost your job and as a result have begun to struggle with payments.

• You have had an accidental death in the family that jeopardizes your ability to make payments.

• You are going through a divorce that is taking a toll on your finances.

• You have been diagnosed with a long-term illness that is affecting your finances.

If these situations seem extreme it is because they are. Credit card companies do not extend their hardship program facilities to the average person who has gotten a little over their heads. They are reserved for those who are going through genuine life-changing circumstances and are generally treated on a case by case basis.

To this end, credit card hardship programs should not be looked upon as a solution to get out of debt, unless of course your case falls within the parameters described above. The best solution for anyone struggling with making credit card payments is to take a stern approach to paying down balances by drafting a budget and directing all extra cash to making additional payments.