How to qualify for a credit card hardship program this November

A hardship program could keep your credit card debt from breaking the bank, but you'll have to qualify first.  Getty Images

As we head into November, many Americans are feeling financial strain caused by carrying a credit card balance from one month to the next. After all, credit cards are one of the most expensive financing options, with the average credit card interest rate now exceeding 23% — the highest rate on record. That, coupled with the compounding nature of credit card interest, has resulted in significant financial strain for millions of cardholders.

Another issue is that many households continue to feel the lingering effects of inflation on the prices of everyday essentials, despite significant improvements in the inflation rate. This economic pressure has led more people to rely on credit cards to bridge the financial gaps they're facing. The average person now carries nearly $8,000 in credit card debt, and given how quickly the interest charges can compound, many cardholders are searching for solutions to their escalating debts.

For those facing unexpected financial hardships, a credit card hardship program may be the right move. These assistance programs can provide substantial relief by temporarily reducing interest rates, waiving card fees or lowering monthly payments. However, they're not automatically available to everyone — and you must meet specific qualification criteria to enroll.

Learn about your credit card debt relief options here.

How to qualify for a credit card hardship program this November

If you're considering applying for a credit card hardship program, here's how to get started:

Identify your financial hardship

Hardship programs are typically designed to assist people who are facing genuine, verifiable financial difficulties, like a recent job loss, high medical bills, a reduction in income or other unexpected events. So before reaching out to your card issuer, take the time to gather documents that support your situation, such as termination notices, hospital or doctor's bills, pay stubs showing reduced hours or bank statements that highlight financial strain. Being transparent and specific about your financial challenges will make your request more compelling.

Get rid of your high-rate credit card debt now.

Have your financial information ready

You should also be prepared to provide a clear and detailed picture of your current financial situation. This might include a summary of your monthly income, expenses and any other debts you're managing. Some issuers will request specific forms of documentation, such as recent pay stubs, tax returns or a monthly budget breakdown. Presenting accurate and organized information can strengthen your case and make it easier for the issuer to understand why you need assistance.

Contact your card issuer

Not all credit card companies offer hardship programs, and the terms can vary significantly among those that do. Some issuers may only provide short-term assistance, while others offer longer periods of relief. In order to determine what's available to you, call the customer service number on the back of your card and ask to speak with someone about financial hardship assistance. Make sure to ask specific questions about eligibility requirements, program terms and the documentation you'll need to submit.

Demonstrate a willingness to pay

Issuers are more inclined to offer assistance to customers who show a history of responsible debt management. If possible, highlight your past efforts to make timely payments, even if they were partial or occasionally delayed. If you're experiencing a temporary setback, make sure your lender knows you are committed to paying down your debt once your situation improves. A willingness to work toward repayment, even in small amounts, can improve your chances of being approved for a hardship program.

Apply promptly

Applying promptly, especially if your financial issues are worsening, can increase your chances of securing assistance. Credit card companies sometimes adjust their hardship programs based on the economic climate and customer demand, so reaching out sooner rather than later can give you a better shot at getting approved before stricter criteria or limited availability impact your chances.

What to do if you don't qualify

If you're not approved for a credit card hardship program, don't lose hope. Other debt relief options may still be accessible to you. Here are a few alternative strategies to consider:

• Credit card debt forgiveness: Credit card debt forgiveness, also referred to as debt settlement, is a process in which you work with a debt settlement company or negotiate directly with your creditors to try and settle your debt for less than what you owe. 
• Debt consolidation: Debt consolidation allows you to combine multiple credit card balances into a single loan, ideally with a lower interest rate, to simplify your payments and potentially reduce the amount of interest you're paying each month. 
• Debt management: A debt management plan helps you pay off credit card debt with structured monthly payments over three to five years. These programs may offer reduced interest rates or waived fees, making monthly payments more affordable. 

The bottom line

Credit card hardship programs can be a valuable tool for those who qualify, so if you're facing a temporary financial setback, it may be worth considering this option. But if you don't qualify, other debt relief solutions may provide the help you need. By exploring the options above and speaking with a debt relief expert, you may be able to find a pathway to reduce your debt burden this November and work toward long-term financial stability.