What You Should Know About Credit Card Hardship Programs
More Americans are struggling with their household debts as credit card balances continue to rise, with consumers owing a total of $1.28 trillion as of December 2025. So maybe it’s no surprise that delinquency rates also ticked up.
If you’re one of the millions of Americans struggling to keep up with credit card payments, enrolling in a credit card hardship program could offer some short-term relief.
Here’s how credit card hardship programs work, from who qualifies and how to apply to alternatives if you’re not approved for the program.
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What Are Credit Card Hardship Programs?
A credit card hardship program is a payment plan you coordinate directly with your credit card issuer. Typically, when you enroll in a credit card hardship program, you’ll get lower payments, a reduced annual percentage rate or waived fees.
While a credit card hardship program can make your debt more manageable, it’s not debt forgiveness. You’re still expected to pay back your balance, and interest may accrue. Terms are typically time-limited, and you should expect your account to be frozen while you’re enrolled in a credit card hardship program.
“Credit card hardship programs can be very useful to help people who can afford to pay off their credit card debt but are seeing little progress,” says Ashley F. Morgan, a bankruptcy attorney based in Virginia. “Most credit card hardship programs will close the credit card account and lower the interest rate.”
Who Qualifies for a Credit Card Hardship Program?
These programs are reserved for cardholders who face financial setbacks and are examined on a case-by-case basis. But common hardship qualifiers include:
— Job loss
— Income reduction
— Medical expenses
— Natural disaster
— Family changes, such as divorce or caregiving
Not all card issuers offer a hardship program, so it’s important to call your lender and speak to someone directly about your available options. But before you do that, be prepared with documentation that proves your hardship — such as recent pay stubs, an unemployment letter or medical bills.
“Lenders review each application individually, so providing detailed evidence of the legitimacy of your hardship may help you gain approval,” says Leslie H. Tayne, a financial attorney and founder of Tayne Law Group. “Medical bills, accident reports, termination letters and pay stubs are good examples of relevant documents to keep and submit.”
[Read: Balance Transfer Credit Cards]
How to Apply for a Credit Card Hardship Program
Follow these steps to request a hardship program from your credit card issuer:
1. Create a budget so you know your ability to pay.
2. Contact the issuer and ask for the hardship or customer assistance team.
3. Explain your hardship, including the cause and how long you expect it to last.
4. Make a specific request, such as an APR reduction or fixed payment for six months.
5. Negotiate and make sure you understand the options the issuer offers.
6. Provide any requested documents, such as proof of hardship or income and your budget.
7. Get the terms in writing, including the rate, payment amount and duration.
8. Monitor your statements to ensure the account is adjusted as promised.
9. Continue making payments with the modified financial assistance plan.
Terms and Trade-Offs of Credit Card Hardship Programs
Entering into a credit card hardship program shouldn’t be considered business as usual, and you should expect some changes to your account if the issuer offers a break to help you catch up on payments.
It’s likely you’ll have your account frozen or closed during the program, or at least a lowered credit limit. That limits your use of the card while in the program and can affect your credit utilization ratio. Automatic payments may be required.
Typically, you won’t be able to earn or redeem rewards while enrolled. It’s also a good idea to get credit reporting terms in writing to know what to expect on your credit report. “There is a credit hit since the account will be closed, but because you are making payments the account stays in fairly good status,” says Morgan.
[Read: 0% Introductory APR Credit Cards]
Credit Card Hardship Alternatives
If you can’t get approved for a credit card hardship program or need more help than the issuer can offer, there are other options.
— Nonprofit credit counseling: Working directly with a credit counselor may help you negotiate lower APRs and lower payments across multiple credit cards.
— Balance transfer credit card: A balance transfer card can be cost-effective if you’re able to repay your balance within the 0% APR window. Some are as long as 21 months.
— Debt consolidation loans: This type of loan can allow you to pay off balances with a fixed term and payment, and APRs may be lower than your credit card APR.
— Debt settlement or bankruptcy: While an option, these alternatives come with lasting effects and should be considered as a last resort.
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What You Should Know About Credit Card Hardship Programs originally appeared on usnews.com
Update 04/08/26: This story was previously published at an earlier date and has been updated with new information.