What an American Express Hardship Plan Is

An American Express hardship plan is an agreement between you and American Express to change your payment terms when you're facing a temporary financial crisis. Instead of paying your full statement balance by the due date, you make smaller monthly payments over a set period — usually 12 to 60 months, depending on what you and American Express agree to. American Express does not automatically offer these plans; you have to call and request one.

The key difference from a balance transfer or debt consolidation loan is that you're negotiating directly with the card issuer, not moving the debt elsewhere. American Express may also reduce or temporarily pause interest charges during the plan period, though this varies based on your situation and what you negotiate. The goal is to keep you from defaulting on the card entirely.

Key Takeaways

  • You must call American Express directly to request a hardship plan — they do not offer them automatically, and there is no online form to submit.
  • American Express typically requires you to explain the specific hardship (job loss, medical emergency, divorce) and show that it is temporary rather than permanent.
  • Plans usually run 12 to 60 months with reduced monthly payments, and interest rates or fees may be reduced or paused depending on your agreement.
  • Accepting a hardship plan may affect your credit score initially, but it typically causes less damage than missing payments or defaulting.
  • You should get the plan terms in writing before you stop making regular payments, because verbal agreements alone are not enforceable.

How to Request a Hardship Plan from American Express

Call the customer service number on the back of your American Express card. Tell the representative that you are experiencing financial hardship and want to discuss a payment plan. Do not wait until you miss a payment — calling before you fall behind gives you more negotiating power and more options.

Be prepared to explain what caused the hardship: a job loss, medical bills, divorce, or another specific event. American Express wants to hear that the crisis is temporary and that you have a plan to recover, not that your income has permanently shrunk. If you have already missed payments, mention that but focus on your current situation and your ability to commit to a new payment schedule going forward.

The representative may ask about your income, expenses, and other debts. Answer honestly. They use this information to propose a monthly payment you can actually sustain. If the first offer does not work for your budget, you can negotiate — ask if they can lower the payment further, extend the timeline, or reduce the interest rate.

What Happens to Interest and Fees During a Hardship Plan

American Express may reduce your interest rate, pause interest charges entirely, or waive certain fees as part of the hardship plan. There is no standard formula — it depends on your specific situation, how much you owe, and what you negotiate. Some cardholders get interest paused for the entire plan period; others get a reduced rate but not a pause.

Ask the representative explicitly: "Will interest continue to accrue during this plan?" and "Will any fees be waived?" Get the exact terms in writing before you agree. If interest continues to accrue, calculate what your total payoff amount will be by the end of the plan period, not just your monthly payment. A lower monthly payment means nothing if interest keeps growing underneath it.

Credit Score Impact and Reporting

Entering a hardship plan typically causes an initial dip in your credit score — usually 50 to 100 points — because American Express reports the account as "account under hardship plan" or similar language to the credit bureaus. This is less damaging than a missed payment (which can drop your score 100 to 200 points) or a default, but it is still a negative mark.

The damage is usually temporary. As you make on-time payments under the plan, your score begins to recover. Once you finish the plan and the account returns to normal status, the hardship notation eventually ages off your credit report. The key is to make every payment on time during the plan period — missing even one payment can trigger default and undo the protection the plan was meant to provide.

What to Do If American Express Denies Your Request

American Express can refuse to offer a hardship plan if they believe you are not experiencing genuine hardship or if your account is already in default. If your request is denied, ask why. The reason matters: if it is because you have not yet missed a payment and they want to see you fall behind first, you can call back later. If it is because your account is already in collections or charged off, you may need to work with a debt collector or attorney instead.

If you believe the denial was unfair, you can file a complaint with the Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov. The CFPB investigates complaints against credit card companies and can pressure them to reconsider. This does not may provide approval, but it creates a record and may prompt American Express to review their decision.

Alternatives If a Hardship Plan Does Not Work

If American Express will not offer a plan you can afford, or if you have multiple cards and need to address all of them at once, other options exist. A debt management plan through a nonprofit credit counselor spreads payments across multiple creditors and may include interest rate reductions negotiated on your behalf. Debt consolidation through a personal loan moves the balance to a single new loan with a fixed payment. Bankruptcy is a last resort but may be necessary if your total debt far exceeds your income.

Each option has different costs and credit impacts. A credit counselor can help you compare them without charging you upfront. The National Foundation for Credit Counseling (NFCC) offers free or low-cost consultations; you can find a counselor at nfcc.org.

Getting the Agreement in Writing

After you and American Express agree on plan terms, ask the representative to send you a written confirmation. This should include the new monthly payment amount, the plan duration, the interest rate or whether interest is paused, any fees that are waived, and the date your first payment is due. Do not rely on a verbal agreement or notes you took during the call.

Keep this document with your records. If a dispute arises later — for example, if American Express claims you missed a payment when you did not, or if they try to charge interest you thought was paused — you have proof of what was agreed. If you do not receive written confirmation within a few days, call back and request it again.

Frequently Asked Questions

Will a hardship plan stop me from using my American Express card?

Usually yes. Most hardship plans require you to stop using the card during the plan period. American Express may close the account or reduce your credit limit to zero. This is intentional — the plan is meant to help you pay down the existing balance, not accumulate new charges.

What if I get a job or my situation improves before the plan ends?

You can pay off the remaining balance early without penalty. Call American Express and ask what the payoff amount is. Paying early actually helps your credit score recover faster because the account returns to normal status sooner.

Can I get a hardship plan if I have already missed payments?

Yes, but it is harder. American Express is more likely to offer a plan if you call before you miss a payment. If you have already missed one or two, you can still request one, but the terms may be less favorable. If your account is already in default or sent to collections, you will need to work with the collection agency instead.

Does a hardship plan affect my other credit cards or loans?

Not directly. The hardship plan only affects your American Express account. However, the credit score dip from the hardship notation may make it harder to get new credit or refinance other debts during the plan period. Your other creditors will not automatically lower your rates or change your terms.

What happens after the hardship plan ends?

Once you finish making all payments under the plan, the account returns to normal status. American Express will stop reporting it as "under hardship plan" to the credit bureaus. The account may be closed or have a zero balance, depending on your agreement. You can then rebuild your credit by using other cards responsibly or by requesting a credit limit increase on this card if American Express reopens it.