Credit Card Debt Forbearance Options–Can Cardholders Delay Credit Card Payments?

Individuals who have credit card debt often find themselves in a position where they cannot afford to make the entirety of their credit card payment at the present time or they may have entered into an area of financial difficulty which makes their credit card payments hard to overcome. Unemployment has been one of the main causes over the past few months that has prompted many cardholders to seek out a credit card debt forbearance plan from their credit card lender.

When someone suddenly faces the loss of their income or begins having a difficult time paying what they owe due to cutbacks at their place of employment, credit card debt can start to mount and, when interest is factored in, some people begin to see the amount of money that they owe as an insurmountable task that cannot be met. However, some individuals have been able to work out a forbearance plan with their credit card company which will allow them the opportunity to either forego payments for a set period of time, get a lower monthly payment, or a lower interest rate on their credit card debt.

Delinquency, defaulting, or even credit cardholders who have filed for bankruptcy are something that credit card lenders often seek to avoid at all costs. There are many cases and reports that make mention of credit card holders getting a forbearance plan if they are proactive and contact their credit card lender at the first sign of trouble. While it’s obvious that the credit card holder will want to get a forbearance for a more affordable repayment plan for their own interests, it will also be in a credit card lender’s best interest to avoid a situation where a cardholder simply defaults or files bankruptcy.

While each individual’s credit card situation will be different and may require an alternate form of action, many financial advisers often tell their clients who have credit card debt that is becoming burdensome to contact their credit card lender and talk over options, like a forbearance plan. Some credit card holders only need a month or a few weeks to get their financial life in order, but there are those who may need a longer period of time or something as simple as reduced monthly payments, before they can begin paying down their credit card debt.

There is no requirement for a credit card company to offer a forbearance plan, but individuals who have credit card debt and simply wait around for the card company to make the first move may find themselves in a position where they have missed payments, seen a decrease in their credit score, or have allowed themselves to get into such a poor financial position that there is little that can be done to help.