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foureyes29 · Posted: Mon Aug 11, 2008 2:01 pm Subject: hardship programs

I am currently on a hardship program with Discover. They have reduced my payments by about 50% and reduced my interest about 12%, but did not reduce the amount i owe. My question is: Should I also ask them if they can also reduce the amount i owe? Has anyone ever had success with this? Can I continue making payments as well as asking them to reduce the amount i owe?

Thank you everyone.

God bless

Posted: Mon Aug 11, 2008 2:12 pm Subject:

It's highly doubtfull that they will reduce your balance unless you've been missing several payments in a row and they eventually agree to a lump-sum settlement to close out your account (and they would only do this if they saw that you were heading towards bankruptcy).

If your account is active (you are making payments on it), then they see it as profitable and won't likely reduce the balance (otherwise, your account wouldn't be as profitable, and that is their focus... not on your ability to repay, but how much profit they can squeeze out of your account).

I say "highly doubtful" and "won't likely" because... well, anything's possible... just not probable.

Hardship programs are designed to keep your balance from reducing much, to keep your account in good standing and to keep you paying on their terms.

Hope this helps...

kristin · Posted: Mon Aug 11, 2008 2:53 pm Subject:

how did you get them to do a hardship for you? were you behind in payments? how long is your hardship program for? I haven't had much success in that area yet. Citibank did just lower my interest rate from 29% to 20% (I guess effective my next payment since it's dated afer my last one was due). But I can't even pay this month. So it's not going to do me much good!

in a mess · Posted: Mon Aug 11, 2008 4:33 pm Subject:

I am curious too as I tried with Advanta and they just flat denied me any assistance. How many payments, if any, were you behind?

Posted: Mon Aug 11, 2008 5:38 pm Subject:

I agree with jjanney. It's pretty unlikely that they will reduce your balance as part of a hardship program. The only reason that they give hardship programs is that they hope you will get back on your feet and be able to return to making full payments on your account.

To Kristin and In a Mess, my creditors started offering me hardship programs as soon as I started missing payments and they started making collection calls. You have to tell them that the reason you are behind is because you are experiencing a hardship.

Posted: Tue Aug 12, 2008 4:49 am Subject: there are better...

I was offered 9% from Discover on a hardship program right away so I don't know if they will lower you from 12%. You should tell them your situation has worsened and need lower payments and mention to them you know they do offer 9%.You can stop making payments and I bet they will lower your interest.

Posted: Tue Aug 12, 2008 8:01 am Subject:

I'm not sure that they would lower it again if you have already entered a hardship program. Someone else may have experience in this area since I don't, but my understanding has been that once you enter a hardship program, you really need to try to keep up your end of the agreement if you don't want the program to terminate.

Posted: Tue Aug 12, 2008 9:11 pm Subject:

I am of the belief that it never, ever hurts to ask because all they can do is say no. However, it is entirely possible they would deny it. I would like to say that I had tried every option available.

Posted: Wed Aug 13, 2008 11:34 am Subject:

In general credit card hardship programs are a joke. I have two credit cards in good standing that I use maybe once a year. One is MBNA which switched to BOA and the other is CITI. They both have fixed rates at 12.5% and have been fixed at that rate since I opened them over 5 years ago. That is a standard rate and they still make money. I did not apply for any hardship to get that rate. Basically what I am getting at is unless they are offering you 0% for a year or reducing your principle then they aren't really doing you any favors because all they are doing is moving you to the rate it should have been to begin with.