Home : Finance : A Brief Guide To Credit Card Hardship Programs

A brief guide to credit card hardship programs

A brief guide to credit card hardship programs

Emergencies like losing a job, sudden medical expenses, or financial setbacks can often cause or increase debt and also make it difficult to keep up with debt repayment. Credit cards are one of the most common sources of debt in the country. Fortunately, there are ways in which one can avoid defaulting on their credit cards, especially when dealing with sudden yet temporary financial difficulties. One such option is a credit card hardship program.

What are credit card financial hardship programs?
A credit card hardship program is an option offered by credit card issuers and banks to customers facing financial difficulties, providing them temporary relief. If, due to certain circumstances, the customers find themselves unable to make even minimum monthly credit card bill payments, they can seek assistance from their lender through these programs. The bank or lender can arrange for these cardholders to make reduced payments toward their existing credit card debt.

Features
A financial hardship program can help provide monetary relief in several ways, the exact benefit varying from lender to lender. But a credit card hardship program typically has one or more of the following features:

1. Reduction in the monthly payment amount
One of the most common ways lenders offer financial relief to their customers is by temporarily reducing the minimum monthly payment on their credit cards.

2. Pausing monthly payments
Some programs offer a temporary suspension of monthly credit card payments to their customers.

3. Lower interest rates
One may also be offered lower interest rates on their credit card payments for a temporary period. They may even be offered a complete suspension of interest charges for a specific period, anywhere between six to 24 months.

4. Waiver of late fees
If a cardholder has accrued penalties and charges for making late payments, credit card companies can waive those penalties under their financial hardship program. This feature is especially useful for those who might have been facing financial difficulties for a while now, making them miss credit card payments.

5. Extended due dates
One can also get an extension on the due date for making credit card payments from the card issuer.

Qualification requirements
Credit card hardship programs can be extremely beneficial for those who are in serious financial difficulties due to unforeseen circumstances, like loss of a job, unexpected medical emergencies, losses due to a natural disaster, pay cuts, or divorce. Such situations can be a source of financial burden, preventing one from making credit card payments. When that happens, one can immediately contact their credit card company or bank and discuss their situation. The credit card company will ask one to share certain details to check if they qualify for the program and also ask one to fulfill a few requirements to get started. The requirements include:

1. Ability to provide documentation
First, a credit card holder may be required to present documents to the credit card company that substantiate their financial difficulties. This includes pay stubs, medical bills, divorce papers, or a letter of termination.

2. Good payment history
If a credit cardholder has had a good payment and credit history prior to the financial emergency, i.e., they have paid credit card bills on time in the past, they may have a better chance of getting assistance from the credit card company via financial hardship programs.

3. Consultation with a credit counselor
A lot of credit card companies also require cardholders to consult a credit counselor to qualify for the financial hardship program. Some institutions may also ask cardholders dealing with financial difficulties to enroll in a debt management program as well.

It is important to note that the qualification requirements can vary from institution to institution. So, before signing up for the financial hardship program, one must carefully go through all the terms and conditions and address all their concerns to avoid unwanted surprises.

Things to know before enrolling in the program
1. Credit card accounts can be frozen
It is important to note that in some cases, the credit card company may temporarily freeze the cardholder’s account as long as they are enrolled in the hardship program.

2. Interest may continue to accrue
In some cases, the credit card company may continue to charge interest on the card payments even as one is enrolled in the program. So, one should have a strong interest payment plan in place once the program ends.

3. Review finances beforehand
Before one signs up for a credit card hardship program, one should review their finances and check if they can still make a few monthly credit card payments before they need to pause the payment cycle.

4. Quick action can help
As soon as one realizes they will not be able to make monthly payments in the near future, they should reach out to the card issuer and seek assistance. One should ideally take this step before they miss a bill payment. This is because the company may provide better assistance if one acts quickly than if one reaches out after they miss a payment. Also, missing a payment affects the credit score, so being proactive here can help one avoid this outcome.

Most Popular

3 common types of soaps that trigger eczema flareups

3 common types of soaps that trigger eczema flareups

Atopic dermatitis or eczema is a skin disease that makes the skin reddish, inflamed, and itchy because of specific triggers. It can affect any body part and appear anywhere on the skin. The most common symptoms are dryness, bumps, rashes, redness, and peeling of the skin. Despite being one of the most typical forms of atopic dermatitis, there is no such common definite cause; however, particular triggers cause eczema flareups, including specific kinds of soaps. Soaps and eczema flareups When eczema triggers, most of the time, it makes its appearance in certain typical parts of the body. These include behind the knee areas, hands, and feet. Some of the most common triggers of eczema flareups include household cleaners containing specific chemicals, and, most notably, soaps. However, the experience of eczema won’t be the same for everyone. One of the most typical symptoms is dry skin, where the soap’s role becomes significant. It is a pretty well-known fact that using soaps makes one’s skin dry. This happens because of specific harsh chemicals that swipe off moisture from one’s skin. These chemicals can also trigger severe irritation and reactions, specifically if the skin is too sensitive or if one is suffering from eczema.
3 effective ways to manage multiple myeloma

3 effective ways to manage multiple myeloma

Multiple myeloma is a type of cancer that affects the plasma cells in the bone marrow. Here, cancerous cells begin accumulating in the bone marrow and outnumber the healthy cells. This leads to huge amounts of unwanted proteins rather than helpful antibodies. About 34,000 adults in the country are estimated to be affected by this condition in 2022. However, the disease can be managed through the following treatment options, foods, and lifestyle changes: Treatment options Multiple myeloma does not have a permanent cure, but the disease and its symptoms can be managed with the right treatment. Doctors may recommend immunotherapy to treat this blood-related condition. Immunotherapy This is a treatment method that empowers the patient’s immune system to fight cancerous cells. It is a biological therapy where certain substances derived from living beings are used for the treatment. Here are a few options: CAR T-cell therapy: This is a form of immunotherapy prescribed for multiple myeloma patients. This works on the T-cells (a white blood cell type), stimulating them to fight cancerous growth. The therapy involves drawing blood from the patient and adding chimeric antigen receptors (or CARs) to the blood, helping the T-cells target certain cancerous cell antigens. The CAR T-cells are then infused into the blood of the patient.
9 must-try styling hacks for a trendy look

9 must-try styling hacks for a trendy look

For most people, achieving a fashionable look that stands out can be incredibly challenging, especially in a hurry. Celebrities and fashion influencers often turn up to events looking flawless; have you ever wondered how they manage to do so every time? Why by using fashion hacks, of course! To come to your rescue, here are some styling hacks that you can incorporate into your daily outfit-planning routine to look effortlessly stylish. Pick the right accessories It may seem generic, but it is still important to pick the right accessories to ensure your outfits have the best look. Three accessories can effortlessly upgrade any look. The best ones you can try are sunglasses, a belt, and a bag. Match these items with other outfit elements for a seamless flow. You can also go with options that have striking design elements that can elevate simple outfits and attract attention. Match the skirts with boots It is one of the best styling hacks popularized by many fashionistas – matching the boots with dresses or maxi skirts. Typically, dresses or skirts in delicate materials like lace look spectacular with solid, edgy boots. Mixing two opposite styles is one of the most genius ways to look fashionable.
7 delicious and nutritional snacks for kids

7 delicious and nutritional snacks for kids

Feeling frequent bouts of hunger is not unusual for kids. In fact, it’s quite normal for children in their developing years to feel hungry frequently. However, extreme hunger can lead children to reach out for processed foods, most of which are filled with artificial ingredients, added sugars, and refined flour. These foods have empty calories and no nutritional value. Here are some nutrition-rich kid snacks you can make for your kid without any hassles: Celery with peanut butter and raisins Also known as “ants on a log,” celery with raisins and peanut butter can prove to be a fun way to make your child have a vegetable. Chop a twig of celery into three or four pieces. Take some peanut butter and spread it evenly inside the hollow part of the celery. After that, put some raisins on the peanut butter. The three foods combined in this recipe can offer an excellent balance of nutrients like protein, fat, and carbs. However, ensure that the peanut butter you use is not loaded with added sugars or vegetable oils. Nuts Nuts are notable for their high-fiber content, along with healthy fats and antioxidants. To support your child’s growth, it is essential to provide them with sufficient dietary fats.
7 human foods safe for consumption by dogs

7 human foods safe for consumption by dogs

A dog is a man’s best friend. Now you might have heard this a lot of times, and if you have ever had a pet dog, then you know the joy they bring into the lives of others. However, as often happens with family, you must have been tempted to share your food with your pet dog. Unfortunately, not all human foods are pet-safe. Read on to learn about which foods your dog can eat. 7 human foods that are safe for consumption by dogs It is a known fact that dogs and puppies have different digestive systems compared to humans, making some of the foods you eat unhealthy or even toxic for them. Here are some of the human foods that are safe for dogs: Carrots Vegetables and fruits are known to be incredible sources of nutrition. Carrots are an excellent source of fiber, vitamins, and minerals, making it a snack that your puppy can eat at any time of the day. You can either cook it or even feed it as a raw snack, but remember to cut the vegetable into small pieces to avoid choking hazards. Watermelon Some fruits can probably make your dog incredibly sick, but watermelon is not one of them.

Popular Articles

4 essential vitamins for optimum eye health
health
01

4 essential vitamins for optimum eye health

The eyes are complex organs and need a variety of nutrients to function optimally. Many common health conditions like glaucoma, cataracts, age-related macular degeneration, diabetic retinopathy, and others can negatively affect our eyes, which may lead up to a complete loss of vision. While some conditions like moderate astigmatism can be corrected using contact lenses or eye lenses, others can be prevented by consuming a healthy dose of these 4 vitamins: Vitamin A Vitamin A deficiency is one of the most common causes of blindness globally. Vitamin A plays a crucial role in maintaining a clear cornea (outside the covering of the eye). A person with this vitamin deficiency may find their eyes not producing enough moisture to stay lubricated. It is also essential for maintaining the eyes’ light-sensing cells called photoreceptors. A deficiency of vitamin A can also lead to xerophthalmia, a progressive eye disease that begins with night blindness. Continued deficiency can lead to the drying up of the eyes and tear ducts, and softening of the cornea, resulting in irreversible blindness. To maintain eye health, it is recommended to eat vitamin-A-rich foods, like sweet potatoes, leafy greens, pumpkins, squash, bell peppers, carrots, dairy products, egg yolks, and liver.
Read More
Avoid these 5 smartphone habits
smartphones
02

Avoid these 5 smartphone habits

For most people, it is next to impossible to get through the day without using smartphones at least a few times. You need to make calls, check updates on the go, and even use smart navigation systems on your phone. But some smartphone habits can severely hamper productivity, affect your health, and may make you overly dependent on the gadget. So, here are five smartphone habits to keep in check: Using an alarm app Using your phone as an alarm clock might seem completely harmless. After all, apps on the phone let you set multiple alarms. But it never stops at hitting the snooze or dismiss button once you wake up. You will be tempted to check your phone for messages and social media, which will delay getting out of bed. Opt for a conventional alarm clock and keep your phone away from you at night to avoid checking anything after getting up. Ignoring software updates Smartphone care is as important as learning how to use the device in moderation. Many people make the mistake of postponing crucial software updates and granting necessary application permissions. These habits make the device extremely vulnerable to cyber-attacks that can access confidential data. Always keep your phone updated to ensure the latest security updates are installed.
Read More
7 foods that help fight against Bronchitis
health
03

7 foods that help fight against Bronchitis

When you have bronchitis, it’s easy to overeat greasy, salty, or sugary foods to relieve the coughing, breathing, and throat pain. Alternatively, you may decide not to consume anything at all. However, you should take care and watch what you eat as refined carbs and saturated fats might impede recovery. Knowing which foods to avoid and which to eat may influence the severity of bronchitis symptoms. Here’s a list of a few items you should avoid. Foods with preservatives and additives Sulfites, a form of preservative, may aggravate bronchitis. Liquor, dried fruits, pickled foods, maraschino cherries, and lime juice all contain sulfites. Processed and quick meals frequently contain chemical additives, flavors, and colorings. Some bronchitis patients may be susceptible to or intolerant to these artificial components. Gas-forming foods Eating large meals or gas-producing foods strains the diaphragm, especially if you suffer from acid reflux. This can cause chest pains and asthma flare-ups. Beans, cabbage, carbonated beverages, onions, and fried dishes are examples of these foods. Sugar and HFCS Do you enjoy drinking sugar-laden colas? Be cautious. They can be dangerous to your health. Avoiding syrups, candies, and other sugary foods will help to relieve symptoms such as coughing, irritation, and discomfort in your lungs.
Read More