If you’re struggling with your payments, a credit card repayment plan can help you lower your monthly payments.

It can be frustrating when you’re struggling every month to make timely payments to your creditors.  Most credit card companies have internal repayment programs to help you lower your payments to something more manageable.  It’s important to contact your credit card company if you find yourself struggling to make your payments.  So how do you go about getting on a payment plan?

Credit Card Repayment Plans, Just ask

The great thing about some of the internal programs is that you don’t have to be delinquent on your payment in order to qualify.  Some creditors offer a short term assistance (<6 months), while some creditors offer a long term solution (up to 60 months).  For example, Chase has a great internal hardship program called the “Balance Liquidation Program” that lowers your interest rate anywhere from 0-6% and puts you on a payment plan for up to 60 months!  Here’s how to prepare for the phone call:

• Financial Hardship- Creditors will always ask you why you need assistance.  Make sure you have your financial hardship story in order before calling.  A financial hardship can include: loss of income, divorce, medical reasons, etc.
• Budget- Be prepared to list out your sources of income and expenses.  Some creditors will ask you about your current job situation, and ask what your major expenses are every month.  Make sure you have enough disposable income every month to cover your credit card payments.  If you don’t, there’s really nothing the creditor can do to help you maintain your payments.  Makes sense right?
• Possible Account Closure­- Some of the programs require that the accounts be closed.  This is because they don’t want you accumulating any more debt if you’re truly concerned about getting rid of debt.  If you’re serious about getting out of debt, this shouldn’t be a problem right?
• Auto drafted Payments- Creditors will require that your monthly payments be taken out electronically every month.  This is to ensure that your payments are made on time.  Most creditors will kick you out of the program if you miss consecutive payments. 

What if I can’t get a Credit Card Repayment

If your creditor doesn’t put you on a repayment plan, there are other options!  A program very similar is called a Debt Management Plan, which is often administered by a credit counselor.  Under this program, your creditors will agree to lower your interest rate and stop/waive all late fees and penalties.  You will be on a structured plan to get out of debt in less than 5 years.  Most creditors participate in these plans, and it’s a great way to get your payments to amount more affordable.

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