Falling behind on credit card payments? You may qualify for a deferred payment plan or hardship program that temporarily reduces or pauses your payments. Learn which issuers offer these programs, how to qualify, and exactly what to say when you call.
A deferred payment plan (also called a hardship program or forbearance arrangement) allows you to temporarily reduce or pause your credit card payments when facing financial difficulty. These programs are designed to help you catch up without damaging your credit or facing collections.
Important: Don't Wait Too Long
Hardship programs are most effective when requested before you miss payments. Once you're 60+ days delinquent, issuers are less likely to offer favorable terms. Call as soon as you anticipate difficulty.
| Program Feature | Typical Terms | What to Know |
|---|---|---|
| Duration | 3-12 months | Can often extend if hardship continues |
| Payment Reduction | 50-100% | Some issuers allow $0 payments temporarily |
| Interest Rate | Reduced to 5-10% | Some waive interest entirely during hardship |
| Credit Reporting | Varies by issuer | Most report as "current" with special comment |
| Card Usage | Suspended | Card typically frozen until program ends |
Interest typically continues to accrue during deferment, though often at a reduced rate. Some issuers:
Pro Tip: Ask About Interest Forgiveness
Always ask: "Do you capitalize interest during the hardship program, or is it waived?" Some issuers will waive interest if you explain your situation is temporary and you're committed to resuming payments.
Program Name: Chase Hardship Program
Terms: Reduced APR (often 5-10%), reduced minimum payments, or temporary payment suspension for up to 12 months. Card usage suspended during program.
How to Apply: Call 1-800-432-3117 (Chase Customer Service) and ask for the "Hardship Department" or "Customer Assistance Program."
Credit Reporting: Typically reports as "current" with a special comment indicating modified terms.
Program Name: American Express Financial Assistance Program
Terms: Payment deferral up to 12 months, reduced APR, waived fees. Amex offers both short-term (1-3 months) and long-term (up to 5 years) programs depending on severity.
How to Apply: Call the number on the back of your card and ask for "Financial Assistance" or "Hardship Program."
Credit Reporting: Short-term programs typically don't affect credit. Long-term programs may be noted on your credit report.
Program Name: Citi Assistance Program
Terms: Reduced interest rate, waived fees, lower minimum payments for 3-12 months. Some customers qualify for interest-only payments.
How to Apply: Call 1-800-950-5114 (Citi Customer Service) and request "Assistance Program" or "Hardship Deferment."
Credit Reporting: Generally reported as current if payments are made as agreed under the program.
Program Name: Capital One Hardship Program
Terms: Payment deferral up to 6 months, reduced APR, waived late fees. Capital One offers flexible programs tailored to your specific hardship.
How to Apply: Call 1-800-227-4825 and ask for "Hardship Department" or "Payment Assistance."
Credit Reporting: Reported as current if you make modified payments on time.
Program Name: Bank of America Hardship Program
Terms: Payment deferral, reduced interest rate, or modified payment plan for up to 12 months. BofA offers both short-term emergency relief and longer-term assistance.
How to Apply: Call 1-800-732-9194 and request "Hardship Assistance" or speak to a "Specialized Lending Representative."
Credit Reporting: Accounts in good standing under the program are typically reported as current.
Program Name: Discover Hardship Program
Terms: Reduced APR, lower minimum payments, or temporary payment suspension for 3-6 months (extendable). Discover is known for relatively flexible hardship terms.
How to Apply: Call 1-800-347-2683 and ask for "Hardship Department."
Credit Reporting: Generally doesn't negatively impact credit if you follow the program terms.
Credit card issuers typically accept these circumstances as qualifying hardships:
Some issuers require documentation to verify your hardship:
No Documentation? Still Apply
Many issuers approve hardship programs based on your verbal attestation alone — especially for short-term programs (1-3 months). Don't let lack of paperwork stop you from calling.
Before calling, have ready:
Use the issuer-specific numbers listed above. When you reach a representative:
Before agreeing to anything:
If your issuer denies a hardship program, you have alternatives:
Ask to speak with a supervisor or the "Executive Customer Relations" department. Sometimes front-line representatives have limited authority to approve programs.
If they won't defer payments, ask: "Can you at least reduce my interest rate?" A lower APR makes minimum payments more manageable and reduces how much goes to interest.
A nonprofit credit counseling agency can negotiate with issuers on your behalf. Through a DMP:
If you still have decent credit, a 0% balance transfer card can give you 12-21 months of interest-free payments. Balance transfer fees are typically 3-5%, but you'll save on interest.
Write a formal hardship letter explaining your situation and requesting assistance. See our hardship letter guide for templates.
| Option | Best For | Pros | Cons |
|---|---|---|---|
| Hardship Program | Temporary hardship (1-12 months) | Lower payments, reduced APR, credit protection | Card frozen, may be noted on credit report |
| Debt Management Plan | Multiple cards, long-term debt | One payment, reduced rates, nonprofit counseling | Cards closed, 3-5 year commitment |
| Balance Transfer | Good credit, need 12+ months | 0% APR, no interest, flexible payments | Requires good credit, 3-5% transfer fee |
| Debt Settlement | Severe hardship, behind on payments | Pay 40-60% of balance, faster debt-free | Credit damage, tax implications |
| Personal Loan | Consolidating multiple debts | Fixed rate, fixed term, one payment | Requires decent credit, origination fees |
Most issuers report hardship accounts as "current" if you make modified payments on time. However, some add a special comment indicating modified terms, which may:
The long-term credit impact is typically positive compared to alternatives:
Credit Recovery After Hardship
Once your hardship program ends and you resume normal payments, any special comments are typically removed. Your score should recover within 3-6 months of consistent on-time payments.
If your issuer forgives or waives interest during hardship, you generally do not owe taxes on the waived amount. The IRS considers this a modification of loan terms, not cancellation of debt.
However, if you settle for less than the full balance (debt forgiveness), the forgiven amount over $600 may be reported as taxable income on a 1099-C form.
If your financial situation is more severe, consider these options:
Negotiate to pay 40-60% of what you owe. See our debt settlement letter template for DIY negotiation scripts.
Chapter 7 bankruptcy can discharge unsecured credit card debt entirely. Chapter 13 creates a court-supervised repayment plan. Consult a bankruptcy attorney if your debt exceeds 50% of your annual income.
NFCC-certified counselors offer free consultations and can enroll you in a Debt Management Plan if appropriate. Find one at nfcc.org.
Yes, but your options are more limited. Issuers are more likely to offer hardship programs before you miss payments. If you're already 30-60 days late, call immediately — you may still qualify. At 90+ days, issuers typically move accounts to internal collections, making hardship programs harder to obtain.
In most cases, no. Issuers typically freeze or suspend your card during hardship programs to prevent additional debt accumulation. You'll need to use alternative payment methods until the program ends.
Yes. You can typically make extra payments or pay off the balance early without penalties. In fact, this is encouraged — the hardship program is a minimum payment modification, not a restriction on additional payments.
Your account typically reverts to standard terms: your original APR (or a new standard rate), regular minimum payments, and full card privileges resume. Any accrued interest during hardship is typically added to your balance. If you're still struggling, you can request an extension before the program ends.
Most major issuers (Chase, Amex, Citi, Capital One, Bank of America, Discover) offer formal hardship programs. Smaller issuers and credit unions may offer assistance on a case-by-case basis. Call your issuer to ask — programs aren't always advertised.
Yes, but each card must be enrolled separately with its respective issuer. If you have multiple cards in hardship, a Debt Management Plan through a nonprofit credit counselor might simplify things by combining all payments into one.
Before requesting hardship assistance, make sure the debt amount is accurate. Send a debt validation letter to verify balances and account details — free, instant download.
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