Consolidating debt forum
What are bank sponsored credit card hardship payment plans?
Banks reach out through the phone and with mailers in an effort to get accounts that have fallen behind back on track.
Bank-sponsored lower monthly hardship repayment plans are accomplished by reducing your credit card interest rates.
Some hardship payment options have a temporary timeline.
Large credit card banks are willing to work directly with you shortly after you miss a payment.
Hardship payment programs are a bank’s loss mitigation effort for credit card debts. I cover the many issues with missing payments, and hardship repayment plans in general, in more detail below.
Hardship letters are something more consistent with what you would include when you are looking at a home mortgage modification, a short sale, or qualifying for some type of benefit or adjustment on your home loan.
Qualifying for a hardship program with credit card debt is literally just a matter of a phone call, and qualifying in your credit card banks system for the payment reduction.
Longer term hardship repayment plans offered by credit card lenders did not become popularized until the economy started to take a dive several years ago.If you bank representative asks you to send in something in writing that outlines your hardship, it is typically not a problem to send them what you would convey over the phone, but detailed in a letter or email.The vast majority of us will be able to answer one of our credit card lenders frequent calls, or place a call ourselves, in order to discuss lower monthly payment options.Some banks offered long term plans during the worst of the recession, but now only offer temporary plans.These “life of the balance” repayment programs closely resemble debt management plans available through a nonprofit counseling agency.