Can't Pay Your Credit Card? Ask About a Hardship Program

Ask what changes, and what stays the same

• Does the option reduce interest, change the due date, waive a fee, or temporarily reduce payments?
• How long does it last, and what payment or balance will remain afterward?
• Will the card be frozen or closed, and how will the issuer report the account?
• What happens to existing automatic payments, and when does the new arrangement take effect?
• Can I receive the complete agreement in writing before relying on it?

If the proposed payment still does not work

A hardship program is usually an arrangement with the existing issuer, not new borrowing and not necessarily forgiveness. Do not assume it removes prior late payments or has no credit consequences. Continue to follow the existing agreement unless a confirmed new arrangement changes it; a conversation alone does not modify payment obligations.

If the issuer's proposal remains unaffordable, a nonprofit credit counselor may help review the wider budget and discuss a debt management plan. A consolidation loan requires lender approval and full repayment under new terms. Settlement has different risks, including missed payments, collections, lawsuits, fees, and possible tax consequences. Compare the tradeoffs instead of treating a smaller payment as the whole answer.

Keep the date of the conversation, representative's name or reference number, and written terms. Revisit the plan early if income changes rather than waiting until the next missed payment.

Why Credit Card Minimum Payments Can Keep You in Debt

Paying on time matters, but the minimum is not designed around your preferred payoff date. Your statement can help expose the difference.