What to Ask for When You Can't Make a Card Payment

If you can’t make your credit card’s minimum payment, call the issuer before the due date, not after. Have a realistic number ready for what you can pay and a rough sense of how long the problem will last. Many issuers have hardship programs that can lower your rate or payment for a while, but they rarely advertise them, and you usually have to ask.

Before you call

Spend 15 minutes on the numbers. List your income for the next month, then your essentials: housing, utilities, food, transportation, insurance, and anything you need to keep working. Whatever’s left is the most you can offer the card company. If you have several cards, divide it sensibly among them.

Also be clear on why you’re short and for how long:

• Temporary: a gap between jobs, a medical leave, a one-time expense. You might need two or three months of lower payments.
• Longer-term: a permanent drop in income, or debts that have simply grown too big. Say so. The issuer may have different programs for each.

What to say

Call the number on the back of your card and ask for the hardship or payment assistance department. You can keep it short:

“My hours were cut last month and I won’t be able to make my full minimum payment. I can pay $60 on the 20th. What options does my account have?”

Then ask about specifics:

• Can my interest rate be lowered temporarily? For how long?
• Can the minimum payment be reduced, or the due date moved to after my payday?
• Will late fees be waived?
• Will my card be frozen for new purchases during the program?
• How will this be reported to the credit bureaus?
• What happens when the program ends, or if I miss a payment under it?

Many hardship programs close or suspend the card while you’re enrolled. That’s usually fine, since you shouldn’t be adding to the balance anyway, but it’s good to know before you agree.

Get it in writing

Write down the date, the representative’s name, and exactly what was offered. Ask for the terms by email, letter, or secure message before your first reduced payment. Then check your next statement to make sure the rate and payment match what you were told.

If you’ve already missed a payment, call anyway. What Happens After a Missed Credit Card Payment? explains why catching up before the 30-day mark matters so much.

If the offer still doesn’t work

Don’t accept a plan you can’t keep just to end the call. Ask if there’s another option, or call back another day.

A nonprofit credit counseling agency can look at all your debts together. Many offer free budget reviews, and some can set up a debt management plan, where you make one monthly payment to the agency and it pays your cards, often at reduced interest rates. Ask about fees before you enroll. Understanding Debt Relief Options compares this with settlement and bankruptcy, and How to Get Out of Debt covers the longer repayment plan.

Be wary of any company that charges a fee before it has settled any of your debts, guarantees to make your debt disappear, or tells you to stop talking to your card company. Charging upfront fees for debt settlement is illegal under FTC rules, and the other two are classic warning signs.

After you have a plan

Put every payment date in your calendar or set up autopay for the agreed amount. Keep copies of everything. If things change again, for better or worse, call again. Issuers can often adjust a plan, but only if they hear from you first.

Sources

• CFPB: What should I do if I can’t pay my credit card bills?
• FTC: How to get out of debt
• FTC: Debt relief and credit repair scams

This article is for educational purposes and is not financial advice.