Credit Card Debt Hardship Programs

Credit Card Debt Hardship Programs are offered by credit card companies to help consumers, when in trouble, with making required payments to their credit cards.

The objective of those hardship programs is to give a financial break to those credit card holders that are experiencing economic difficulties and help them get back on their feet in order to continue the regular due payments of their credit card debt.

Credit extended to consumers via the credit card system, when accumulated, ends as a credit card debt. Although it is unsecured consumer debt it brings a lot of frustration to the debtor due to shame, anger and fear from not able to pay it.

If a credit card debtor is late with payments, as a general rule, credit card issuers will charge late payment penalties, increase the interest rate of the credit debt, report the late debtors to the credit agencies, and even may change other terms of the contract unilaterally. In such cases credit card debtor ends up with higher monthly payments and higher credit card debt.

The financial situation of a credit card debtor can be aggravated with the experience of a sudden loss of income due to layoff, illness, or accident. In such cases a credit card hardship program, if offered by the card issuer, can be of great help and relief to the credit card debtor.

The help comes in the form of reduced monthly payments and in most cases reduced interest rate, but the catch is that the debtor has to stop using the credit card. The card account is open for payments under the new terms – but blocked for any use.

To get into a credit card hardship program you have to contact your credit card issuer and show them evidence that currently you are really experiencing a financial hardship and you are unable to continue credit card payments under the current terms.

If you are accepted in such credit card hardship program you have to continue making the payments under the new, affordable for you terms.