Defer Payments to Credit Cards
If you're experiencing a financial hardship, such as a job loss, illness or divorce, you may find it difficult to meet all of your monthly obligations. When you're struggling to pay your mortgage and buy groceries, you may neglect other payments, such as those owed to credit card companies. Rather than risking further financial difficulty and damaging your credit, learn defer your credit card payments until you can get back on your feet.
Instructions
1. List each of your accounts, including account number, card issuer, total balance, current interest rate, and minimum payment. Note any accounts that are past due as you will need to contact these creditors first.
2. List your monthly expenses and compare the total to your total monthly income. Outline the reasons why you need to defer your credit card payments and estimate how long you expect the hardship to last. A hardship deferral or forbearance is typically only granted in cases of extreme financial difficulty, so you must be able to demonstrate true need.
3. Contact your card issuer's customer service department. Ask if the company offers any type of forbearance or deferment program. Give the representative your account information and explain the relevant details of your financial situation. If this is the first time you've encountered difficulty making payments, point out your prior account history and payment record. Specify the amount of time you need to have payments deferred. You may request that your interest rate be lowered temporarily or that finance charges and other fees be suspended as well.
4. If your creditor grants you forbearance, have the company send you the terms of the agreement in writing. Carefully read the terms of the agreement and sign any requested documents. Note the duration of the forbearance period, the interest rate, and your account status. As part of the forbearance agreement, your creditor may lower your limit or close your account.
5. If your creditor denies your request for forbearance, ask if the company offers any other hardship or debt management plans. Such plans allow you to make reduced payments, temporarily lower your interest rate, and reduce monthly fees. You must have some type of income to be eligible for these plans, and you may need to provide your creditor with a hardship letter and supporting financial documents.
