Setting Up A Credit Card Hardship Program
With credit cards being such an important part of consumer financial stability, it is no secret that many consumers these days are dealing with hard to handle credit card debt. After looking into a few debt programs, many consumers make the decision to try and work things out themselves. People simply don’t want to hire third parties. Looking for alternatives to debt consolidation and debt settlement, many consumers simply deal with their debts hoping for better days ahead. But, what if I told you that you can get relief simply by working with your lenders?
Credit Card Hardship Programs
Due to the incredible growth in numbers of consumers facing financial hardships, many lenders have made the decision to work out hardship programs to help these consumers. These programs are designed for consumers who have experienced an increase in their expenses or a decrease in their income. Once a consumer qualifies for a financial hardship, the representative will let that consumer know the exact terms associated with the financial hardship program.
Generally, when a person decides to join a financial hardship program there are a few things that will happen. The first thing that will happen is the account will be closed. This account closure is simply to help the consumer who is facing a financial hardship by not allowing them to increase their amount of debt. Once the account is closed, the lender will usually reduce the interest rate in turn reducing the minimum payment required. Generally the consumer will be given a fixed payment that will be the same each month. This is a way to help the consumer with budgeting for making payments.
How To Qualify For Credit Card Hardship Programs
Although credit card hardship programs are out there for the consumers, not everyone will qualify. Qualifying for a credit card hardship program includes actually experiencing a financial hardship. This means that either your income has been reduced or your expenses have increased causing financial stress in the household. A general rule of thumb is that if after paying for all necessities, you only have $150 or less to live off of each month.
Some examples of financial hardships would be if your hours were reduced at work causing you to struggle to pay your bills each month. Also, a child moving back into the home increasing expenses can qualify as a financial hardship. There are all kinds of different scenarios. If you would like to know if yours is one that would qualify, simply ask me at Joshua@JEMCreditCards.com or leave a comment below.
Getting Prepared To Set Up A Credit Card Hardship Program
As with anything, when setting up a credit card hardship program, preparation is key! There are a few things that you will want to get prepared before calling your lender once you are sure that your hardship will qualify. First, you will want to make a list of all of your expenses. This includes everything from rent to food to day care and everything in between. Once you have your list of expenses, it is time to set up a list of income. Make sure you know your gross and net monthly and annual income from all sources. The only thing you can leave out of the income is child support and alimony.
Once you have your lists together, you will want to make one more list. This is the list of lenders that you will be calling. Make sure on this list that you include your lenders name, credit card account number and customer service phone numbers. Once you have done so, you will be ready to call the lenders. You may want to have a bite to eat, grab a drink and go to the bathroom because you are about to be on the phone for a while. One part of preparation is to make sure you are prepared to be on the phone for at least a half hour per account.
Making The Credit Card Hardship Program Call
The final step of the process of setting up a credit card financial hardship program is to make the call to the lenders. When you call the lenders, it is important to remember to always be polite and honest. Grab your list of accounts and phone numbers and call the first on the list. When you call the lender, chances are that you will have to navigate yourself through the automated system. Once you get to a live representative, simply say “Hi, I have been experiencing a financial hardship and I would like to know who I can speak with to make alternate payment arrangements.”. Once you ask this question, you will be transferred to the financial hardship department in most cases.
Once at the financial hardship department simply explain to the representative what is causing your financial hardship and that you would like to know what they can do to help you. They will then perform a financial analysis which is why you created the lists of income and expenses. If you qualify, chances are, your financial hardship program will take place by the time you get off the phone. Simply repeat this process with each lender to achieve maximum results!