Hardship Question

iVillage Member
Registered: 09-21-2008
Hardship Question
6
Fri, 02-05-2010 - 1:30pm

I have read that some have called the cc companies and asked for the hardship dept.

 

Community Leader
Registered: 07-26-1999
Fri, 02-05-2010 - 4:35pm

Usually what happens is they will lower your interest rate, which in turns lowers your monthly payment because your balahce won't be increasing as much and as fast because its a lower interest rate, and since the

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iVillage Member
Registered: 03-07-2005
Mon, 02-08-2010 - 8:16am
I'm not positive but I think they will also close the account.
Community Leader
Registered: 07-26-1999
Mon, 02-08-2010 - 9:18am

That's a good question, I am not sure about that.

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iVillage Member
Registered: 07-25-2008
Wed, 02-17-2010 - 1:39pm
It doesn't hurt to call your CC and ask them! Or if you are in too deep, you can call CCCS of Atlanta and they will help you negotiate with your CC's. Good luck!

Amanda

iVillage Member
Registered: 07-15-2010
Thu, 07-15-2010 - 4:12pm

WARNING:

iVillage Member
Registered: 08-04-2008
Thu, 08-12-2010 - 3:07pm

The information given in the previous post is INCORRECT in many aspects.

I have personally put 3 CCs on Hardship relief with the following results:
1. Interest rates were lowered from 24-29% to 9-12%
2. Minimum payments agreed to were 20-30% less than what I had been paying
3. MORE money is going to principle every month - it does not just pay on the interest as the previous poster stated. They set you up to be able to pay off the total amount in 48 months at most. The terms can be 6 or 12 months, but you can call them back and just say your situation has not changed and they will keep you on the same plan as long as you continue your payments.
4. My credit report was NOT hit with anything other than canceling of the card so it lowered my available credit and I saw a 5-10 point drop in credit score (I monitor mine daily so I can see the results of the changes) and they have gone up once more principle is paid back.

I personally would not use debt settlement - I have paid off a lot of debt and did not have to pay a company to help me do it. It took a 2nd job and hard choices, but it really can be done if you work really hard.

By the way, I have paid off all three of those cards that were on hardship in FULL and they got their 9-12% interest which is quite a bit of overall profit.

I was also never asked to provide proof of my income or any of the bills I stated in writing. So be sure to do a bit of fancy footwork on the income and debts you have and call back each and every month until you get somewhere. No one should have to pay over 20% to a CC company.

-Marie