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.

Popular Articles

Top Categories

Recent Articles

7 mistakes to avoid while browsing the internet

7 mistakes to avoid while browsing the internet

home & needs
Most of us use the internet for hours daily. So doesn’t it make sense to ensure we’re doing things correctly if we invest much money and time in it? Whether you are a seasoned computer expert or a beginner, certain mistakes are inevitable. Given the recent rise in online fraud and crime, it is necessary to exercise caution. Keep reading to learn about internet mistakes that could ruin your web browsing experience. Accepting every cookie request Cookies, in essence, are documents that websites create on your computer when you visit them. These files are not hazardous by nature and store data that must be accessible from one session to the next, including login information. They can, however, be misused to track your online activity. Although one might be aware of what cookies are, one might not fully comprehend their significance. It is best to enable first-party cookies, set by the website you visit, and disable third-party cookies placed by other domains. Clicking on pop-up ads with misleading information One might know that pop-ups are counterfeit, but not many know they can be dangerous too. It’s easy to accidentally click inside the ad and be directed to a spyware site or, worse, have malware automatically downloaded onto your computer.
6 Foods to Eat to Manage Psoriatic Arthritis

6 Foods to Eat to Manage Psoriatic Arthritis

health
Psoriatic arthritis is a form of arthritis that develops in some people with psoriasis, a chronic skin condition. It occurs when a person’s immune system starts to attack the body’s cells, leading to inflammation in joints and the overproduction of skin cells. It affects close to 1-3 percent of the world’s population. It is non-curable, and few treatment options aim to manage the symptoms. Read along to learn about its symptoms, triggers, and more. What are the symptoms of psoriatic arthritis? Many signs and symptoms of psoriatic arthritis are similar to those of rheumatoid arthritis. The manifestations of this disease also may vary from person to person. Some of the common indicators of the condition include: Scaly and inflamed skin, especially on the knees, scalp, and elbows. Pain, swelling, and stiffness in one or more back, hips, or neck joints. Lack of energy or tiredness. Tenderness in the soles and heels Swelling of a whole toe. Dents or pits in the nails. Inflammation of the eye and blurry vision accompanied by redness or pain. What triggers psoriatic arthritis? The cause of psoriatic arthritis is an immune system disorder, where your immune system acts against your body. Both genetic and environmental factors seem to influence this response.
Uncontrolled Asthma – Causes, and Worst Cities to Live In

Uncontrolled Asthma – Causes, and Worst Cities to Live In

health
Asthma is a chronic respiratory condition that causes swelling and inflammation of the airways. It is estimated that more than 339 million people worldwide suffer from this disease. It affects people of all age groups, and genders. However, it is more common in adult women than in men. Asthma has no specific underlying cause, but various allergens like pollen, dust, mold and even perfume can trigger asthma. Read on to learn more about the condition. What is uncontrolled asthma? Uncontrolled asthma is when affected individuals have persistent symptoms that interfere with daily life, even when they are on regular medication. It is estimated that over 60% of adults who are asthmatic suffer from uncontrolled asthma. Causes of uncontrolled asthma Stress People may experience asthma attacks due to excessive stress and strong unpleasant emotions like unhappiness or crying. One must try to reduce one’s anxiety and stress. Underlying health condition Some respiratory health conditions like sleep apnea that block the upper airway while sleeping can lead to an asthma flare-up. Environmental allergies could also worsen asthma attacks. Weather change Moving from drier to humid air or warmer to colder air might cause asthma attacks. This condition can be brought on by minor weather changes or leaving a controlled environment.
Lupus – Symptoms, Risk Factors, and Diagnosis

Lupus – Symptoms, Risk Factors, and Diagnosis

health
Systemic lupus erythematosus (SLE), commonly known as lupus, is a chronic autoimmune condition. Here, the body’s immune system, which is supposed to fight infections, begins attacking healthy tissues and organs. This causes pain and inflammation. One may also experience symptoms like skin sensitivity, joint pains, rashes, and issues with internal organs like the kidneys, heart, and lungs. The condition does not have a cure, however, treatment options can help one manage its symptoms. Symptoms Here are a few symptoms one should recognize: Fatigue Most people with lupus experience fatigue, which can worsen with muscle and joint pain. Many may experience stiffness and swelling in the neck, thigh, and arms. While getting adequate sleep can relieve general exhaustion, when fatigue is accompanied by some sort of pain and discomfort, one should consult a doctor. Skin rashes The most common and prominent symptom of this disease is a butterfly-shaped rash on both cheeks and the nose bridge. Around 30% of people affected by lupus experience this symptom. The rash may appear suddenly before a flare-up or right after excessive sun exposure. For some, the condition also causes hives and non-itchy lesions all over the body. Some may notice discoloration in their toes or fingers.
Foods to Avoid to Manage Eosinophilic Esophagitis

Foods to Avoid to Manage Eosinophilic Esophagitis

health
Eosinophilic Esophagitis, or EoE, is a chronic digestive disease of the esophagus caused by an allergic condition. It is characterized by chest pain, heartburn, and solid food dysphagia. If this disorder is left untreated, it can cause esophageal remodeling and stricture formation. This disorder is also marked by eosinophilic inflammation and impacts the quality of life of the affected person. You can check out various reliable health websites to get information on eosinophilic esophagitis. A patient with EoE must be very careful with his health and meal plans, as research suggests that EoE is linked to food allergies. Therefore, the six most common food items that are responsible for such allergies include: Dairy Cow milk is said to be one of the most common reasons for EoE. Milk protein can trigger too many eosinophils. You should avoid food items made up of milk, buttermilk, lactose, and other related dairy products. You can replace dairy products with coconut hemp, dairy-free yogurts, cashew ice cream, etc. Soy Soy-based food items include tofu, soy butter, soymilk, and miso. Soy cheese, soy nuts, soy milk, etc., should be avoided and can be substituted with refined soybean oil or coconut aminos. Wheat You might think wheat is only found in bread, cereal, or baked goods.
5 Common Digestive Issues and Their Symptoms

5 Common Digestive Issues and Their Symptoms

health
One of the most vital systems in our body is the digestive system. It is responsible for the digestion of food and the distribution of nutrients throughout the body to meet the bodily requirements for energy, development, and cell repair. Issues in the digestive can interfere with the body’s ability to get energy from food. While some gastrointestinal issues can go away with healthy eating habits, other concerns may require treatment. Irritable bowel syndrome (IBS) IBS is a functional bowel disorder. This means the cluster of varied symptoms categorized as IBS is brought on by changes in the normal functioning of the digestive system. The primary sign is abdominal pain, which can develop before or after a bowel movement, and is a reliable indicator of IBS. Additionally, one may experience both constipation and diarrhea. The form of IBS can be determined depending on whether a person has diarrhea or constipation more frequently or both equally. Other IBS signs and symptoms are incomplete bowel motions, white mucus in the stool, and bloating. Nutrition is important for managing the symptoms of IBS, which includes eating low-fat, high-fiber meals and avoiding common trigger foods when the cause of the condition is unknown. Food poisoning or gastrointestinal infection are common causes.

© 2024 ZealSearches.com. All Rights Reserved.