Credit card hardship programs let you pause or reduce payments when you hit a temporary financial crisis
When you can't pay your credit card bill, the card issuer may offer a hardship program — a formal arrangement that temporarily lowers your payment, freezes interest, or pauses collections activity. These programs exist because issuers know that people in crisis are more likely to pay something than nothing, and that a temporary break often costs them less than a default or bankruptcy.
Hardship programs are not automatic. You have to contact your issuer and ask. The issuer decides whether to offer one, what terms it includes, and how long it lasts. There is no government mandate that forces them to do this, though most major issuers have programs in place because the practice is standard in the industry.
The catch: accepting a hardship program usually means the issuer reports it to credit bureaus as a negative mark — often as a "deferred payment arrangement" or "account under hardship plan." This will lower your credit score. But a hardship program is still better than a missed payment, which damages your score more severely and can trigger late fees, interest rate increases, and collections calls.
Key Takeaways
- Hardship programs are offered by individual card issuers, not by a central agency — you must call your card issuer directly and request one.
- Common options include lowering your monthly payment, freezing interest, or pausing collections for 3 to 12 months, depending on the issuer and your situation.
- The issuer will likely report the arrangement to credit bureaus, which will lower your score, but this is less damaging than a missed payment.
- You need to explain your hardship clearly — job loss, medical emergency, or temporary income drop — and show that it is recent and temporary, not permanent.
- After the hardship period ends, you return to regular payments or work out a new arrangement; the debt does not disappear.
How to contact your issuer and request a hardship program
Call the customer service number on the back of your card. Tell the representative that you are experiencing financial hardship and ask whether the issuer offers a hardship program or a temporary payment plan. Do not wait for a late payment notice — calling before you miss a payment gives you more leverage and more options.
Be specific about your situation. Say "I lost my job in March and have no income until I find work" rather than "I am having money problems." Issuers hear vague requests all the time and often decline them. A concrete, recent hardship — job loss, medical emergency, divorce, unexpected expense — is more likely to be approved than a chronic money shortage.
Ask the representative what information they need. Most issuers will ask for your account number, the reason for the hardship, when it started, and how long you expect it to last. Some will ask for proof — a termination letter, medical bills, or a letter from your employer. Have these documents ready before you call, or offer to email them after the call.
Write down the name of the representative, the date and time of the call, and what was discussed. If the issuer denies your request, ask why and whether you can reapply later. If they offer a program, ask for the terms in writing before you agree — the letter should spell out the new payment amount, the interest rate, the length of the program, and what happens when it ends.
Types of hardship arrangements issuers commonly offer
Reduced payment plans lower your monthly payment to an amount you can afford — often 50% of your normal payment or a fixed dollar amount. Interest usually continues to accrue, so your balance grows even though you are paying. These plans typically last 3 to 12 months.
Interest rate freezes stop new interest from being added to your balance while you make payments. Your balance stays the same even if you pay slowly. Some issuers combine this with a reduced payment, so you pay less per month and no interest accrues. This is the most favorable option for the borrower, but issuers offer it less often.
Payment deferrals let you skip one or more months of payments without penalty. The missed payments are added to the end of your hardship period or to your balance. This gives you breathing room in the when ready crisis but does not reduce the total amount you owe.
Forbearance pauses collections activity — the issuer stops calling and does not report missed payments to credit bureaus during the forbearance period. Interest usually continues to accrue. This is less common than the other options and is usually offered only to borrowers in severe hardship.
Not all issuers offer all options, and the terms vary widely. American Express, Chase, Discover, and Capital One all have hardship programs, but the specifics differ. A payment reduction from one issuer might be 25% of your normal payment; another might offer a flat $50 per month. Always ask what options are available to you before you commit.
What happens to your credit score during a hardship program
Most issuers report hardship programs to the three credit bureaus — Equifax, Experian, and TransUnion — as a "deferred payment arrangement," "account under hardship plan," or similar notation. This appears on your credit report and signals to other lenders that you are in financial difficulty. Your credit score will drop, usually by 50 to 100 points or more, depending on your starting score and the severity of the notation.
However, a hardship program is less damaging than a missed payment. A single 30-day late payment can drop your score by 100 points or more and stay on your report for seven years. A hardship notation is typically removed once the program ends and you resume regular payments, or it fades as time passes. The key is that you are not defaulting — you are making an arrangement with the issuer to pay what you can.
During the hardship period, you may find it harder to open new credit cards or take out loans, because lenders see the notation and assume you are a higher risk. This is temporary. Once the hardship program ends and you make on-time payments for several months, your score will begin to recover.
What to do if the issuer denies your request
If the issuer says no, ask why. Some issuers have strict criteria — they may only offer hardship programs to borrowers with balances above a certain amount, or they may limit programs to borrowers who are already 30 or more days late. If you do not meet their criteria, ask whether you can reapply later or whether there are other options, such as a one-time interest rate reduction or a temporary payment pause.
If you are denied and you cannot pay, you have other paths. You can contact a nonprofit credit counselor through the National Foundation for Credit Counseling (NFCC) or the Financial Counseling Association (FCA). These organizations offer free or low-cost counseling and can sometimes negotiate with issuers on your behalf. You can also explore debt consolidation, a balance transfer to a card with a lower rate, or a debt management plan through a credit counseling agency.
If your hardship is severe and long-term, bankruptcy may be an option, though it is a last resort. A bankruptcy attorney can tell you whether Chapter 7 or Chapter 13 bankruptcy makes sense for your situation. Bankruptcy stops collections when ready and can eliminate credit card debt, but it damages your credit for 7 to 10 years and has long-term consequences.
What happens when the hardship program ends
When the hardship period expires — usually after 3 to 12 months — you return to regular payments on your original terms, unless you and the issuer agree to extend or modify the program. If you still cannot pay the full amount, call the issuer again and ask for another hardship arrangement. Some issuers will grant a second program; others will not.
If you can pay but the hardship notation is still on your report, the notation will typically fall off after the program ends and you make several on-time payments. Ask the issuer in writing to remove the notation once you have completed the program and resumed regular payments. They are not required to do this, but some will as a courtesy.
The debt itself does not disappear when the hardship program ends. If you paid a reduced amount during the program, your balance may be higher than it was before because interest accrued. You are responsible for the full balance, and if you do not pay it, the issuer can pursue collections, charge off the account, or sue you for the debt.
Hardship programs versus other debt relief options
A hardship program is a temporary measure — it buys you time but does not reduce the debt. If you need longer-term relief, other options exist. A debt management plan through a credit counseling agency negotiates with all your creditors at once, usually lowering interest rates and consolidating payments into one monthly amount. This takes 3 to 5 years and requires you to close the accounts involved, but it is less damaging than bankruptcy.
A balance transfer moves your credit card balance to a new card with a lower interest rate, often 0% for 6 to 21 months. This works if you have decent credit and can may have access to for the new card. You still owe the full amount, but the lower rate gives you breathing room to pay it down faster.
Debt consolidation combines multiple debts into a single loan with a fixed interest rate and payment schedule. This works well if you have good credit and can get a lower rate than your current cards. If your credit is poor, consolidation loans are expensive and may not help.
A hardship program is best if your crisis is temporary — you expect to return to normal income within a few months. If your hardship is long-term or permanent, a debt management plan or bankruptcy may be more realistic.
Frequently Asked Questions
Will a hardship program stop my issuer from calling me?
Usually yes, once the program is approved. The issuer will stop collections calls and will not report missed payments during the hardship period. However, you must make the reduced payments on time — if you miss a payment under the hardship plan, the issuer can resume collections activity and may end the program.
Can I use a hardship program if I am already late on my payment?
Yes. In fact, some issuers are more willing to offer a hardship program once you are 30 or more days late, because they see it as a way to recover some money rather than lose it all to default. However, the late payment will already be on your credit report. A hardship program prevents further damage but does not erase the existing late mark.
What if I have multiple credit cards and need hardship programs from all of them?
You can request a hardship program from each issuer separately. Call each one and explain your situation. Some issuers may approve you; others may deny you. There is no central process — each issuer makes its own decision. A credit counselor can help you prioritize which cards to address first and may be able to negotiate with multiple issuers on your behalf.
Does a hardship program hurt my credit more than missing a payment?
No. A hardship program notation is less damaging than a missed payment. A 30-day late payment can drop your score by 100+ points and stays on your report for seven years. A hardship notation typically fades once the program ends and you resume regular payments. The goal of a hardship program is to prevent the missed payment in the first place.
Can the issuer change the terms of the hardship program after I agree to it?
Technically yes, but they should not without your consent. Always get the terms in writing before you agree. If the issuer tries to change the terms later, contact them in writing and ask for clarification. If they made an error, ask them to correct it. If they are trying to change the deal, you can refuse and ask to speak to a supervisor or request that the program be ended.