Before you fall behind, you can pick up the phone and ask your card issuer for help. Many lenders offer access to a credit card hardship program that can provide assistance to those who are struggling with circumstances beyond their control.
After all, a bank wants to collect what it's owed, and that's less likely to happen if you default. Hardship programs aren't widely advertised — not all issuers offer them — and enrolling in one may still have consequences for your account and your credit scores.
But if you need help, it may be an option. Make a call. What is a credit card hardship program? Where to find a credit card hardship program. Circumstances that may qualify for a hardship program. Steps for getting into a hardship program. Potential hurdles and drawbacks of a hardship program. Alternatives to a credit card hardship program. A credit card hardship program is typically a payment plan that you negotiate with your card's issuing bank.
Terms vary depending on the financial institution, the circumstances of your hardship and the deal you agree to. Note that different kinds of hardship programs exist for different products, including mortgages, student loans, personal loans and more. This is, of course, assuming the lender offers such programs at all.
Bank confirmed to NerdWallet that credit card hardship programs are available at their institutions. Discover also offers general information about its hardship program through its website. But only a few were willing to comment on the specifics of their programs. For that, you'll need to call your lender and begin the conversation. It can be a pride-wrenching task, but possibly an essential one to pay down debt.
Every hardship is taken on a case-by-case basis. Examples of hardships that might qualify include:. Please adjust the settings in your browser to make sure JavaScript is turned on. How can I quickly update my contact information? Can I email you my questions about this? Yes, you can sign in to your account and send us a Secure message. Can I also delay payments on my other Chase cards, mortgage or auto loan or lease? You can enroll all your eligible accounts online.
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Just remember, whatever your current credit card payment is; you need to show the bank that you only have about half of that amount available after everything else is paid. On the seventh day, call your credit card company and request to speak with a supervisor.
Make them work. After the supervisor receives your hardship letter and budget, you can then begin the conversation. Your Answer: You must be incredibly detailed and include proof. Go over your budget in detail, one figure at a time. Golden Financial Services Pro Tip: If they deny you, politely hang up the phone and try again in a week. You will get a different supervisor in a week and time can act as leverage. If you miss the opportunity to settle with Chase directly, after 6 months of non payment you typically will be able to settle the account with a collection agency.
In order to maximize your percentage savings in settlement and mitigate the risk Chase places the account for aggressive collection action, there are some things you need to be doing and things to avoid doing.
If raising the money to settle with Chase in the first 6 months is not an option, there are different details to learn in order to be successful with your Chase credit card settlement.
I would encourage you to start reviewing my debt settlement series to get a sense of what settling credit card debt with Chase is going to look like for you. If you would like to consult with me directly, you can call me at and press option 2, or you can submit a consult request. Anyone reading with questions or concerns about Chase credit card hardship payment plans, or about settling Chase credit card debt instead, is welcome to post questions in the comments below for feedback.
Michael started CRN in with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry, and is a regular contributor to several personal finance websites.
Is this Chase hardship plan the right way to go, or should I hold out to settle this account? Balance liquidation plans and debt settlement are both available on a Chase credit card.
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