Credit Card Hardship Programs

Credit card hardship programs can save a person from having to file for bankruptcy. These programs offer a solution to credit card debt.

The biggest problem that consumers run into, is that they don’t understand all of their credit card debt relief options and end up going down the wrong path.

Whether you want to work directly with your bank or use a professional debt relief service – the following page gives you everything you need to know about credit card hardship programs.

Below is a Table of Contents (TOC). The TOC makes it easy to read this long page. Simply “click on the chapter” to learn the answer.

Credit Card Hardship Program Table of Contents (Simple “CLICK ON” the Chapter)

 

Credit Card Hardship Programs

IAPDA Certified to help consumers that have a hardship with resolving their credit card debts.

To find out if you qualify for a financial hardship program call (866) 376-9846! Get your free consultation from an IAPDA Certified professional.

Our Credentials Include;

 

What is a credit card hardship program?

Credit card hardship programs are designed to help consumers pay off their credit card balances after experiencing some type of financial hardship. A financial hardship is when a person’s income is unexpectedly reduced or expenses are increased.

If you only need a slight or temporary reduction in your credit card payment, you may be able to work directly with your creditor. Credit card companies have an in-house hardship program. They may offer you a temporary reduction in your payment. Typically, credit card companies don’t offer any plans longer than 12-months of a reduced payment to help you through a period of time where your income may only have been temporarily reduced.

If your income has been severely and permanently reduced, you need a permanent solution. Credit card hardship programs at a debt relief company like Golden Financial Services will permanently reduce or eliminate your interest. There are also programs available that will reduce your credit card balances down to a fraction of what you owe.

Here are the quick and simple steps to get approved for the Golden Financial Services hardship programs. Like with anything that sounds great in life, there is always a downside. You may call to talk with an IAPDA certified financial hardship advisor toll-free at (866) 376-9846.

 

Bank of America, Chase, Capital One and Discover Credit Card Hardship Programs

How’s your financial situation? If you have a financial hardship, the bank may either;

A. Temporarily reduce your payment.

B. Temporarily lower interest rates.

Unfortunately, bank credit card hardship programs are only a temporary fix.

PRO TIP: A debt relief company can provide you a permanent fix.

 

What is a Financial Hardship? (See Examples)

Examples of a Financial Hardship - You need a financial hardship to use a credit card relief program through your bank.

There is no set income amount banks use to consider whether or not you have a financial hardship. If there is a set number the banks don’t fully disclose it.

So here’s the trick…

 

Qualification Guidelines:

To qualify for a credit card hardship program directly through your bank; like Bank of America, Discover and Chase – you must be late on your monthly payment, but not where it negatively affects your credit report.

You’re probably wondering, “how is that possible?”

 

STEP ONE: Wait until you’re 7-15 days past due and then call your bank about their credit card hardship program.

PRO TIP: Don’t call your bank requesting to get on their financial hardship program until 7-15 days after you miss a payment.

Don’t worry, it will not be reported on your credit report as a “late payment”.

Late payment history doesn’t get reported to the credit reporting agencies until you’re more than 29 days past due.

Credit Card Hardship Programs (that won't affect credit scores)

WARNING: Keep in mind; just because the late payment wasn’t reported on your credit report, you will still be charged a “late fee” after being late on your monthly payment.

PRO TIP: If you call your bank requesting to get on their credit card hardship program after 7-days of being late and they refuse to work with you, hang up the phone and try again in a week. Also, request to speak to a Supervisor, and ask for a “Financial Hardship Program“. Your credit card company will then ask you a series of questions including:

  • Firstly, they ask you; “How long you anticipate the financial hardship to last?” (Say 6-12 months)
  • What caused your financial hardship? (You must be extremely detailed and include proof. We explain more on this below)
  • The bank will ask you specific questions about your income. (Here’s where you need to be the most organized)

WARNING: Don’t call the bank about a credit card hardship program until you have completed a budget analysis and sent it to them. (We provide you the budget analysis template to use in STEP THREE – so it’s easy for you to create a budget)

 

STEP TWO: Send your financial hardship letter to the bank.

To improve the probability of getting approved for your bank’s credit card hardship program make sure to send them a copy of your budget and a financial hardship letter.

This is not a required step, but it’s a smart step that Golden Financial Services advises consumers to take.

Fax, email or physically mail the credit card company a copy of your financial hardship letter and budget analysis, prior to calling them.

When you finally call the bank about their financial hardship program you can start the conversation by asking them to verify your hardship letter and budget analysis was received.

You will be more prepared than they are if you follow these instructions, and hopefully catch them stumbling around. You need to be in control at all times.

 

Here are Financial Hardship Letters

Chase Financial Hardship Program Letter Template (CLICK TO USE IT)

Capital One Hardship Program Letter Template (CLICK TO USE IT)

You may copy the hardship letter from here, and paste it into your own document.

“Your Name

Your Address

City, State, and Zip

Date:

Name of Creditor

Creditor Address

City, State, and Zip

Reference to: Financial Hardship Account Number xxxx–xxxx–xxxx–xxxx

Dear (Creditor Name),

This letter is intended to inform you about my extreme financial hardship, in the hope, it will further my chances of temporarily reducing my monthly payment to an affordable amount. I have exhausted all avenues of income and eliminated all unnecessary expenses in my life. At this point, I only have $105 remaining at the end of the month after paying all my other expenses. Please see the attached budget analysis worksheet illustrating these details.

Here is what happened… My husband recently divorced me. (I’ve included a copy of my divorce paperwork with this letter for your verification purposes)

He paid most of the mortgage over the years when we were married. So after the divorce, I started renting an apartment. The rent is $1,200 per month and my total income is only $1,950 per month.

On top of that, my wages just started being garnished by the government (8 days ago), for my $86,005 in federal student loan debt. I even included my monthly statement for the student loan debt so that you can verify these details are all true.

Next year I will graduate college, and I already have a job lined up, where I’ll be working at my friend’s Deli and earning $12.50 per hour. If you could kindly reduce my payment to $75 per month and waive the late fees, I would be able to continue paying you over the course of this year. In 13-months from today, you can raise the payment back up to what it was. If you don’t work with me, I will be forced to file bankruptcy and I really don’t want to go that route.

If you require any further information, I can be reached at Phone Number or at Email Address.

Sincerely,

Your Name

Signature

Date“

PRO TIP: Try to be very detailed in your financial hardship letter and provide evidence. (i.e. pay stubs, receipts, letter from employer, copies of other bills to validate your expenses)

 

STEP THREE: Directions on how to create your own budget analysis

CLICK THIS LINK TO PERSONALIZE AND CREATE YOUR OWN BUDGET ANALYSIS

 

STEP FOUR: Directions on how to call and negotiate with creditors

When you call the credit card company they may ask you to read them your financial figures (the ones inside your budget analysis) one by one over the phone.

Stop them in their tracks!

First, make them verify that they received your budget analysis and hardship letter (as explained in STEP TWO).

You may at that point send it again directly to the representative that you are speaking to, so make sure you have a computer or fax machine nearby when calling or have everything already scanned on your computer so that you can quickly email it over.

 

The Bank’s Budget Requirement for a Credit Card Hardship Program:

There is no set number.

What you need to show the bank is that you have very little money left over at the end of each month.

PRO TIP: Whatever your current credit card payment is, you need to show the bank that you only have about half of that amount available after all of your other required living expenses are paid.

The credit card company will ask you a series of qualification questions such as;

  • “What is your monthly income?”
  • “How much is your monthly rent or mortgage payment?”
  • “How much is your car payment? .. student loans? … electric? … groceries? … etc…”

PRO TIP: If your credit card minimum payments add up to $500 per month, you need to show the bank that you only have around $250 per month left over after all of your other required monthly expenses are paid. (excluding your credit card payments)

The bank should approve you for their credit card hardship program where your monthly payment gets significantly reduced if you show that you can only afford to pay about half of what they are asking for.

WARNING: If you show the bank there isn’t any money left at the end of the month, you will get denied for their financial hardship program. Don’t show too little!

The credit card companies enter everything into a computer system, so if their computer system shows you have insufficient funds to make a payment you won’t be eligible for their hardship program.

Bank of America, Discover, Chase and Capital One all have very similar credit card hardship program requirements.

I will repeat myself again; “you can’t show too little income or too much income – you will be denied for their program.

Disclosure: The banks have a mind of their own and they don’t disclose their eligibility guidelines for their credit card hardship programs. This information that we are providing is just professional advice to improve your chances of getting approved for the bank’s hardship programs, but there is no guarantee that even these strategies will work because we don’t work for the bank.

Before calling your bank, contact Golden Financial Services. Our credit card relief programs can eliminate all of your interest and save you up to 40% on your balances. Click to Call Now

The downside to credit card hardship programs when working directly with your bank (i.e. Bank of America, Discover, Chase and Capital One)

  • It’s Only Temporary: Payments and interest rates may only be reduced temporarily, and will then go back up.
  • It’s a Small Reduction: You will only get a small reduction in your payment or interest rate.
  • Lowers Credit Score: If the bank requires you close-out your credit card that will lower your credit score.
  • Pay Entire Balance Plus Interest: You must pay back the full balance plus interest with a bank debt hardship program.

 

What is the best credit card hardship program?

PRO TIP: If you’re looking for a bigger reduction in your monthly payment and for a permanent fix, a credit card relief program through a reputable debt relief company will save you the most money and give you the lowest monthly payment.

The banks are looking to make money. Their focus is not “what’s best for you”. The bank’s focus is “what’s most profitable for them”. A third party debt relief company like Golden Financial Services is in business to save consumers money and reduce their debt. Our programs are set up to guarantee that clients’ only pay if they get results and save money.

Take Control of Your Debt Today!

 Call Us For Free

 

Try this Credit Card Hardship Program Debt Calculator (FREE TOOL)

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Get a debt validation program quote!

 

See what credit card hardship programs at Golden Financial Services can do for you

You have the power to choose a plan based on whats best for you!

  • Get an affordable monthly payment
  • Easily take control of your debt
  • Consolidate monthly payments into a single payment
  • Get credit repair included on certain plans
  • Pay nothing if results aren’t achieved

Talk To An IAPDA Certified Counselor Toll-Free 866-376-9846

 

Consumer Credit Counseling Programs

Consumer Credit Counseling is a credit card hardship program that reduces interest rates. Once you’re approved the company will take-over dealing with your credit card payments.

You will only have to pay the consumer credit counseling company one payment each month. They will pay your creditors out of that payment each month but at a reduced interest rate. These plans will get you out of debt in under five years (on average).

PRO TIP: Only use a non-profit consumer credit counseling company because non-profit companies are strictly regulated. If a non-profit company gets a complaint they must respond to multiple regulatory departments and it can cost them thousands of dollars in fees and hours of their time. Non-profit companies do everything possible to avoid complaints and provide clients the best possible service.

Benefits of Consumer Credit Counseling as a Hardship Program for Credit Cards

  • Have only a single payment each month.
  • Interest rates are lowered after joining on this type of credit card hardship program. It is common for a person to have a 30% interest rate, lowered to 8%.
  • Less of an initial impact on credit, when compared to debt settlement and bankruptcy.

The Downside to Consumer Credit Counseling

  • Your program payment will be close to what you’re paying when paying only minimum payments on your own. This is often what prevents people from qualifying for a consumer credit counseling program. They can’t afford it. Consumers with a hardship are usually looking to drastically cut their monthly payment and get out of debt fast.
  • This type of program will last for close to 5-years, which is longer than the average length of a debt negotiation program
  • You will pay back the full amount owed and interest.
  • A consumer credit counseling (CCC) mark goes on your credit (often creditors look down upon this type of mark on your credit report)

 

Debt settlement to reduce credit card balances

Debt settlement is a popular option for a person who has an extreme financial hardship and has fallen behind on their monthly payments. You have three options to turn to. Debt settlement, debt validation, and bankruptcy. That’s it.

Debt settlement makes “debt” affordable. You immediately get one low monthly payment, much like getting a fresh start.

The major downside to debt settlement is that your creditors aren’t getting paid on a monthly basis and your credit report will temporarily suffer.

The point of debt settlement is to get out of debt fast.

PRO TIP: Before settling a debt, use debt validation to challenge its validity. (Below you can read about debt validation)

Benefits of Debt Settlement as a Hardship Program for Credit Cards

  • Debt-free in 42 months or less.
  • The oldest hardship debt relief program in the United States.
  • Not only credit cards qualify (almost all unsecured debts will qualify).
  • Can reduce your balances by 30% or more (including fees)
  • Pay no interest.
  • Clients are set up with a single monthly payment, making it feasible to manage their debt payments.

Take Control of Your Debt Today!

 Call Us For Free

Here is how the settlement process works

You make one affordable monthly payment that we set up for you based on your budget and other circumstances.

Each month your money will be deposited into your trust account, that is solely in your name. You remain in control of the funds at all times, until your creditor gets paid.

As money accumulates, we start negotiating.

Immediately after we get one of your creditor’s to agree to reduce the total balance on a particular debt you will be notified of the offer and must either deny or accept it.

After you accept it, your creditor gets paid directly from your trust account and reports the debt “paid in full” or “settled in full”. It’s an extremely effective program.

You only pay if results are achieved!

Talk about your debt with an IAPDA Certified Debt Settlement Counselor at (866) 376-9846

Company Awards, Certifications, and Credentials

Golden Financial Services can help you to rebuild your credit score after graduating from the settlement program.

While you are enrolled in the program you will learn about the Fair Debt Collection Practices Act (FDCPA) to help you identify if a creditor ever violates your rights, and if they do we will refer you to an attorney to help you sue the creditor.

This will empower you with the knowledge that everyone should have, about debt collection and your consumer rights. To learn more about debt settlement services visit here.

The downside to debt settlement

  • There will be an initial negative impact on your credit score after joining the program.
  • Your creditors can harass you and even issue you a summons. (you will be referred to an attorney for legal protection if this was to happen).
  • The IRS considers your savings as taxable income. (clients will use a special form to show they are insolvent and aren’t required to pay the tax)
  • Not all clients will graduate and results vary.

Your creditors will be contacted and directed to contact your new customer service team once you become a client, rather than calling you.

CLICK HERE – TO GET AN ONLINE DEBT RELIEF SAVINGS QUOTE

 

Debt Validation to Dispute a Bad Credit Card Debt

Finally, the preferred debt relief option is debt validation.

Debt validation uses federal laws to challenge debt collection companies, forcing them to validate your alleged debts.

In 2017, debt validation was the most effective program and the least expensive route to resolving unsecured debt collection accounts.

Although you aren’t paying the debt back, if a debt collection company can’t prove that they are legally authorized to collect on it – you don’t have to pay it. Credit repair is then included to address the inaccurate and negative marks on your credit report. Once the debt is proven to be invalid, the debt collection company can no longer report the debt on your credit report.

Before you settle a debt, challenge it with debt validation. Make sure your creditors are abiding by the laws before you pay on a debt collection account. If they are abiding by the laws, maintaining accurate records and complete documentation that’s required by laws – then we can settle your debt for less than the full balance owed.

 Call Us For Free

 

How does Freedom Debt Relief work?

We get many consumers that ask us about Freedom Debt Relief on a daily basis.
Freedom Debt Relief is a debt settlement company. Debt settlement programs require you to permanently stop making payments to your creditors, and by doing so your credit report can be severely negatively impacted. On the positive side, debt settlement programs can reduce your balances and get you out of debt in around 42 months or less.

 

Freedom Debt Relief Vs. Golden Financial Services

As we just discussed, Freedom Debt Relief offers debt settlement services without credit repair. Golden Financial Services offers debt settlement services, debt validation services, debt consolidation services and some programs come with credit repair. Golden Financial Services offers more options, compared to Freedom Debt Relief. If you visit the Better Business Bureau (BBB.org) and check out Golden Financial Services and Freedom Debt Relief Relief you will find both companies have an A+ rating; However, Golden Financial Services has zero customer complaints and Freedom Debt Relief has 304 customer complaints.

If you have a financial hardship, credit card relief programs can save you from letting the situation get out of control.

Steps to getting approved for a debt relief program

Step 1: Call to talk with an IAPDA certified credit counselor Toll-Free (866)376-9846.

Step 2: You will get a free credit report and credit score.

Step 3: During your consultation, we will review your creditors and credit report. we need to know what credit card issuer or credit card companies you are having problems with and we will check with the credit reporting agencies to see if you have any errors on your credit report.

Step 4: We will review your financial situation, hardship and payment history. Are you able to make minimum payments?

Step 5: We will provide you with debt relief options and you get to choose the monthly payment. Your credit card hardship program and your life without debt will then quickly begin.