Polo Funding has begun flooding the market with debt consolidation and credit card relief in the mail. The problem is that the terms and conditions are at the very least confusing, and possibly even suspect. The interest rates are so low that you would have to have near-perfect credit to be approved for one of their offers. Best 2019 Reviews, the personal finance review site, has been following Polo Funding, Jackson Funding, Tiffany Funding, Nickel Advisors, Coral Funding, Neon Funding, Ladder Advisors (also known as Carina Advisors, Corey Advisors, Pennon Partners, Jayhawk Advisors, Clay Advisors, Colony Associates, and Pine Advisors, etc.).
Finances are difficult to manage, and even the best of us can find themselves in trouble. Even if you have a solid history of paying off your credit card bills, sometimes circumstances change, and you may miss your payments for many reasons. Some people suddenly lose their jobs or get a severe illness, or an unexpected expense comes up that leaves their accounts suddenly empty.
No matter what the case, anyone can fall into financial turmoil. If you start missing your monthly payments on credit cards, interest rates keep increasing, which can stress you out. However, there are ways to seek help and come out of this situation. Credit card hardship programs are one excellent option. These programs are aimed at helping people who can’t pay their credit card bills anymore.
But what exactly is a credit card hardship program? Is it the same as debt consolidation? And how do you know if you’re eligible for one? Let’s check out the details below.
What does a credit card hardship program entail?
Credit card hardship programs are offered by almost all major credit card companies, including Bank of America, Capital One, American Express, Citi Banks, etc. They are repayment plans for people who are struggling to pay their dues. Through these programs, creditors offer concessions like lowering the interest rates, decrease the required minimum payments, or completely waiving penalties or extra fees.
Generally, these programs are short-term and temporary. They last sometime between 3 – 12 months. However, some credit card companies offer long-term plans that last for as long as five years and allow you to repay all of your debt.
Before proceeding to inquire about a credit card hardship program from your creditor, make sure you assess your finances. Calculate how much you would be able to pay each month and what type of help you need to stay on coursewith your repayment plan.
You must ensure that the credit card hardship program would turn out to help manage your finances and repay your debt. Do not go in with the intention of just delaying a missed payment.
If you’re not sure what type of hardship program would be in your best interest, or how to enroll and apply for one, then you should consider seeking professional help. Debt management plans offered by various debt management companies will help you enroll in the best possible hardship program. The company will assign a credit counselor to your case, who would then negotiate with your creditor on your behalf.
Professional counselors have years of experience in dealing with cases just like yours. They can secure payment methods with your creditor in your best interest. They can help lower your interest rate to as low as below 10%.
How to qualify for a credit card hardship program?
It’s not a walk in the park to qualify for a credit card hardship program, every time you think you can’t pay your bills. Credit card companies are very careful in approving these plans for their borrowers. You will have to provide a compelling reason for falling behind on your payments. Few of these reasons could be:
- Losing your employment
- Serious injury, illness, or disability
- Significant reduction in income
- Getting a divorce
- Natural disasters
To convince your creditor, you might have to submit documentation or attend a meeting with their credit counselor. In most cases, credit card companies do not consider applicants for hardship programs until they have missed a least one payment.When you miss out on a payment and aren’t confident about future payments, be quick to contact your credit card company to inquire about hardship programs.
The ideal time to inquire about such a program is right after missing a payment. Do not let your bill be overdue for 30 or more days because your creditor can report your account to credit agencies as delinquent. It would end up damaging your credit score and credit history. If you’re quick to apply for a hardship program before your creditor reports your account, then you can prevent your score from sustaining a significant hit.
How to enroll in a credit card hardship program?
Credit card companies often avoid marketing their hardship programs. Therefore, you’ll have to directly contact the number mentioned on the back of your card or other helplines and customer service numbers available to you. You need to explain your situation clearly and ask for help in paying your bills.
As soon as you get in touch with a representative that can help you, you should honestly explain your situation and tell them the reason why you missed your payment(s). Be very clear in your reasoning, and if possible, let them know how much would you be able to pay towards your debt each month.
If they enroll you in a hardship program, be sure to inquire about the conditions. They might decrease your credit limit, close your account, or freeze your card for the entire period of the hardship program. Be sure that you’re clear on the implications of being enrolled in such a program.
As soon as you’re enrolled in the hardship program, you’ll have to be diligent in paying all your dues accordingly. You could lose the advantage of your hardship program even if you miss one payment on it. Therefore, it’s crucial to accept a payment plan that you can sustain for the period of the program.
If you successfully finish the hardship program and pay all your dues, it will benefit your credit score and history.
Conclusion
Credit card hardship programs are a good option if you can’t pay your current dues. Instead of filing for bankruptcy or taking other extreme measures, this program can help you get out of debt more smoothly.