Credit Card Forbearance: Your Complete Guide to Pausing Payments in 2025
- Credit card forbearance lets you pause or reduce payments on your balances for a period of time.
- Each credit card issuer sets its own rules for forbearance.
- If your credit card debt is truly unmanageable, you may want to explore alternatives to forbearance.
Table of Contents
- What Is Credit Card Forbearance?
- Forbearance vs. Deferment: Understanding the Difference
- How Credit Card Forbearance Works
- Credit Card Forbearance Program Example
- Benefits and Drawbacks of Credit Card Forbearance
- Step-by-Step Guide to Applying for Credit Card Forbearance
- After Forbearance: Next Steps
- Is Credit Card Forbearance Right for You?
- Alternative Debt Relief Options
- Freedom Debt Relief: a Solution Beyond Forbearance
If there’s one thing you can count on, it’s to expect the unexpected. Maybe your car needed repairs the same month your washing machine broke and had to be replaced. Or maybe your hours at work got cut and you had to charge your bills on a credit card for a few months until you were back to a full-time schedule.
It's easy enough to end up with a larger credit card balance than you bargained for when life doesn't go your way. And keeping up with a large balance while also covering rent, car payments, and other expenses can be stressful. If you need a way out, you may want to look at credit card forbearance.
Credit card forbearance is an arrangement you work out with your credit card issuer that lets you skip or reduce your payments for a period of time. Credit card forbearance is only a temporary solution to your debt problem, and eventually, you'll have to pay your balance in full. But it may provide relief while you're dealing with a specific financial hardship.
Freedom Debt Relief is not a Credit Repair Organization and does not provide, or offer, services or advice to repair, modify, or improve your credit.
What Is Credit Card Forbearance?
Forbearance is a temporary pause or reduction of payments that can apply to many types of debt, including mortgage, student loans, and auto loans.
Credit card forbearance defined
With credit card forbearance, your issuer will generally let you either pause your minimum payments for a period of time or lower them, depending on what works best for you. The length of credit card forbearance varies and depends on who you're working with, usually lasts between a few months and a full year.
Interest usually continues to accrue on your balance during credit card forbearance, but some credit card companies may agree to waive interest while your payments are on pause. You may also be eligible for a lower interest rate during forbearance.
Many credit card companies work with borrowers to offer relief from payments when they're experiencing a financial hardship. Some reasons for forbearance may include:
Divorce
Death of a loved one
Illness
Loss of a job
Credit card forbearance became better known in 2020, when many companies stepped up and offered borrowers relief during the pandemic. Lawmakers didn’t set rules on how forbearance works, and no federal laws require credit card companies to offer forbearance. Each credit card company gets to decide whether to allow forbearance, how long it lasts, and exactly what relief is made available.
In credit card forbearance, you’re still required to pay back your entire balance eventually. Just as debt settlement can appear on your credit report, so can credit card forbearance. Late or skipped credit card payments could cause your credit score to drop, but forbearance doesn’t affect your credit standing. If you can't keep up with your monthly minimums, it could make sense to ask about forbearance.
Types of credit card forbearance programs
Credit card forbearance can take a few different forms. It could mean you temporarily:
Pause payments
Make smaller payments
Have your interest rate reduced or interest waived altogether
Have late payment fees waived
Your credit card company should explain which options are available to you, the terms, and how long forbearance will last.
Forbearance vs. Deferment: Understanding the Difference
Both credit card forbearance and deferment let you pause your credit card payments for a period of time. In both strategies, interest on your debt typically accrues. Usually, deferment only lasts for a month or so, while credit card forbearance can last for several months or even a year, depending on your credit card company.
One key difference between credit card forbearance and deferment is that forbearance may have you make smaller payments for a period of time. With deferment, you typically pause payments altogether.
Several credit card companies offer hardship programs that can provide relief for borrowers with extenuating financial circumstances. The details of those programs are specific to each issuer, and eligibility happens case by case. You'll need to contact your credit card issuer and discuss your specific situation to see what relief you can get.
Some credit card companies that offer relief include:
American Express. May let you reduce your monthly payments or get a temporary break from fees
Citibank. Might let you reduce or defer payments for a period of time
Wells Fargo. May offer you a reduced interest rate and minimum payments for a period of time
Capital One. May allow you to defer payments
To be clear, just because a credit card issuer offers forbearance doesn’t guarantee you’ll qualify. You’ll need to contact your credit card issuer to discuss your situation.
How Credit Card Forbearance Works
To qualify for credit card forbearance, you typically need to show proof of a financial hardship. You also need to reach out and ask for it. Don’t expect your credit card company to contact you and offer forbearance if you've fallen behind on payments.
Eligibility requirements for credit card forbearance
The requirements for credit card forbearance vary from one company to another, but be prepared to show proof of your financial hardship. The exact documentation you need will depend on your credit card company and the reason for forbearance.
If you're requesting relief due to being out of a job, you'll generally need to show proof of unemployment, which could include a copy of your termination agreement. If you're asking for relief due to an illness, you may need a statement from a medical professional, or medical bills.
Without the right documentation, your request for forbearance may be rejected. Similarly, your credit card company will typically look at your payment history to see how current your account has been recently. If you have a history of missed payments, you may not qualify for forbearance if your credit card issuer thinks you're unlikely to repay your debt after putting it on pause or temporarily lowering your payments.
You may also be denied credit card forbearance if your income isn't sufficient, or if your credit score is poor. If you're denied forbearance, you can look at credit card debt relief options.
The forbearance application process
To request credit card forbearance, you generally need to phone your issuer or fill out a form online and explain your situation. Your best bet is to see if your credit card company has details on its website on how to apply.
The approval process for credit card forbearance can vary from one lender to the next. You may be able to get an answer within days, but it could also take weeks. If you apply for credit card forbearance by phone, be sure to ask about the timeline for getting a decision so you know what to expect.
Terms and conditions to understand
If you're approved for credit card forbearance, make sure you understand how it works. Read any agreement or document provided by your credit card issuer carefully to understand what's expected of you. Pay close attention to:
Whether you're required to still make monthly payments, and in what amount
What interest or fees you'll incur during forbearance
The length of your forbearance period
Credit Card Forbearance Program Example
If you're interested in credit card forbearance, a real world example could give you a sense of what to expect.
American Express forbearance options
American Express offers credit card holders who qualify the option to reduce their monthly payments and interest rates, as well as have their fees put on pause. Cardholders can select a payment plan that works for them based on their income.
American Express offers both a short-term, 12-month relief plan and a longer-term, 48-month plan. Cardholders who qualify for short-term relief may still be able to make purchases on their card but may be subject to a lower spending limit. However, those getting long-term relief may not be able to use their card in the interim. Cardholders can call 1-866-703-4169 or apply for relief online.
Cardholders who qualify for relief through American Express should expect their minimum monthly payments, interest rates, and fees to reset once their relief period comes to an end. Cardholders can refer to their cardmember agreements to see what terms they'll be looking at after forbearance.
Benefits and Drawbacks of Credit Card Forbearance
Credit card forbearance may be a good solution if you're struggling to keep up with your debt, but it may have some drawbacks as well.
Short-term benefits of credit card forbearance
Credit card forbearance could give you temporary relief from making your minimum monthly payments while you work through a hardship. That break might make it possible to get back on your feet and build some savings so you're in a better position to pay your bills once forbearance is over. Forbearance could help you avoid late fees, reduce the amount of interest you rack up on your debt, and ward off the credit score damage from late or missed payments.
Also consider the mental health benefit of forbearance. Getting a temporary break could give you peace of mind and allow you to focus on getting through the hardship that's made it difficult to pay your bills.
For example, say you normally make a minimum credit card payment of $900 a month, but you're out of work because of an injury. Not making that payment frees up $900 in your budget—and allows you to focus on rest, rehab, and whatever else is needed to aid in your recovery.
Potential long-term drawbacks
Credit card forbearance might offer temporary relief from making payments, but it's typical for interest to accrue on your debt during that time. Once forbearance ends, you could be looking at a higher balance—and larger monthly payments—because of that added interest.
For example, say you have an $8,000 credit card balance and a 24% APY that stays the same during your 12-month forbearance period. If your credit card company compounds interest daily on your debt, you could rack up an additional $2,169 in interest while your payments are on pause—even without borrowing more.
Also, forbearance won't let you off the hook from paying your credit card debt. You'll have to start making payments once your relief period is over, and that may be a hard adjustment.
Impact on your credit score
Credit card forbearance may appear on your credit report if your credit card issuer decides to report it. You shouldn't be reported as late or delinquent on payments while you're in your relief period, which should help minimize damage to your credit score or avoid it completely. Forbearance shouldn’t have a negative credit score impact.
That said, credit card forbearance could indirectly cause credit score damage. For example, if you don't make payments toward your balance during forbearance, it can grow, driving up your credit utilization. Utilization measures your credit card balances against your credit limits. Higher credit utilization typically hurts credit scores.
Step-by-Step Guide to Applying for Credit Card Forbearance
If you think credit card forbearance is right for you, here's what to know about applying.
Before you apply: financial assessment
Before asking for credit card forbearance, figure out the monthly payment, if any, you can afford each month. Try calculating your expenses for a month, and then see how much money you're left with after you cover your essential bills. Here’s what that might look like.
| Expense | Cost |
|---|---|
| Rent | $1,200 |
| Car payment | $500 |
| Auto insurance | $200 |
| Fuel | $200 |
| Food | $500 |
| Health insurance and medication | $300 |
| Electric, water, and heat | $200 |
| Cell phone and internet service | $200 |
| Total | $3,300 |
If your monthly take-home pay is $3,500, you know the maximum credit card payment you can afford to make is $200. If your monthly take-home pay is $3,200, you’ll probably need to ask your credit card issuer to pause your payments completely until you’re able to boost your income or reduce your other expenses.
Contact your credit card issuer
If you decide forbearance is right for you, you can apply online if your credit card issuer offers that option. But you may prefer to do it by phone so you can discuss your situation with a human on the other end of the line.
During that call, explain your financial situation in detail so your credit card company understands the constraints you're dealing with. Find out how long the process of getting approved for forbearance takes, and ask if there's an appeals process if your initial request is denied.
Documentation and proof of hardship
You’ll likely be asked for proof of your financial hardship when requesting credit card forbearance. Your credit card company may give you a list of specific documents to provide, such as pay stubs and proof of your recent hardship.
Managing your account during forbearance
You're typically allowed to make credit card payments while you're in forbearance. If your financial situation changes, it could be helpful to make some payments so you'll have a lower balance to tackle once your relief period ends.
You may want to track your account balance during forbearance to see how much interest is accruing. That could give you a sense of the monthly payments you’ll make when your relief period is over. Also, be sure to set a reminder on your calendar to know when forbearance ends and when your payments have to resume.
Finally, check your credit report and credit score during forbearance to make sure there's no negative impact. Even though your credit card company should not report missed payments as delinquent during forbearance, mistakes can happen.
After Forbearance: Next Steps
Credit card forbearance offers temporary relief only. As forbearance comes to end, it’s time to gear up for the end of your relief period so you're not overwhelmed.
Prepare for the end of forbearance
Keep track of the exact end of your forbearance period and when your first payment is due. In the months leading up to that point, start making room in your budget for credit card payments to help with that adjustment.
That could mean cutting back on expenses where possible to free up the money. You may also want to consider a second job, if you can manage one.
Options if you still can't make payments
If the end of your forbearance period is looming and you’re worried about being able to make payments on your credit card debt, reach out to your issuer right away. It's possible to request that your forbearance period be extended, but your credit card issuer may not agree.
If your financial situation has not changed much or at all since your forbearance period, it's a sign that you may not be in a position to start making payments on your debt again. In that case, it could pay to look into different debt relief options, including debt settlement or another solution, like bankruptcy.
Rebuilding your credit after forbearance
Credit card forbearance itself may not damage your credit score, but the circumstances leading up to it might. Plus, accumulating a larger balance could lead to higher credit utilization, which could negatively affect your score.
Stay on top of your credit report with regular monitoring to make sure it's accurate. If your financial situation has improved during your relief period and you're able to make timely payments again, that could have a positive effect. Also, as you pay off your balance, your credit utilization should decrease, another factor that could help you build good credit.
Consider trying a budget—there are lots of types and strategies even for those who hate math. Keeping an eye on your expenses could help you rebuild your credit after forbearance is over.
Is Credit Card Forbearance Right for You?
Credit card forbearance is worth exploring when your payments are no longer manageable. But make sure it's right for you.
Situations where forbearance makes sense
Credit card forbearance could be the right move when:
You're experiencing a temporary hardship, like injury or the loss of a job
You expect your situation to improve in a year or so
You can make partial payments on your debt but need your minimums reduced
If you don't expect your financial situation to improve within the year, though, forbearance may not be a good solution for you. For example, if you've been injured to the point where you don't think you'll be able to work full-time again, forbearance may not help you. In that case, debt settlement could be a solution worth looking at.
Warning signs that you need more than forbearance
Forbearance is a temporary solution to a debt problem. If these signs apply to you, it may not be appropriate:
You expect your financial hardship to be long-term
You've been in forbearance before, and it made your financial situation worse
You want to settle your debt for a lower amount than you owe
Questions to ask yourself before choosing forbearance
If you're thinking of forbearance, ask yourself:
How soon is my financial situation likely to change?
Have I tried cutting back on spending or increasing my income to keep up with my payments?
Am I willing to make changes to my living situation, like downsizing, to get a better handle on my debt?
Will forbearance help me recover from my financial hardship or make it worse?
Have I explored other options for financial relief?
Alternative Debt Relief Options
Credit card forbearance may not be your only option if you're struggling to make payments. It pays to look at alternatives, too.
Debt settlement and how it compares to forbearance
In debt settlement, you may not have to repay all of your debt in full. Here's a comparison of debt settlement and forbearance.
| Forbearance | Debt Settlement |
|---|---|
| Debt is repaid in full | Could significantly reduce your debt |
| You work with your credit card company directly | You can DIY negotiations or work with a professional debt relief company |
| No direct impact to credit score | Negative credit score impact |
| Temporary solution | Longer-term solution |
| Best for people experiencing temporary hardships | Suitable for people whose financial situation may not improve for a long time |
As an example, let’s say you owe $20,000 on your credit cards. With forbearance, you may be able to pause your payments for 12 months. After that, you’re likely looking at an even larger balance because interest keeps accruing during forbearance.
With debt settlement, you may be able to get your $20,000 balance reduced to $10,000.
Credit counseling services
Credit counseling services could help you put together a plan to pay off your debt and improve your general financial picture. Credit counselors offer something called a debt management plan (DMP) where you consolidate your debts and pay them off with a single monthly payment.
Credit counseling and DMPs are designed to be a longer-term solution to your debt problem. Forbearance is a temporary solution. Credit counseling could also help you develop new financial habits. You won't get that same education with forbearance.
The cost of credit counseling will depend on the company you use. Credit card forbearance doesn't have a direct cost. It may have an indirect cost, though, in the form of accrued interest.
Bankruptcy
If you don't think you'll be able to pay off your credit card balance in full even after forbearance, bankruptcy could be a good solution if you qualify for it. Bankruptcy could make it possible to walk away from some or all of your credit card debt, making it a longer-term solution than forbearance.
Bankruptcy could be a better choice than forbearance when you’re struggling to keep up with debt beyond a credit card balance. Filing for bankruptcy will have a negative effect on your credit score.
Freedom Debt Relief: a Solution Beyond Forbearance
Freedom Debt Relief differs from credit card forbearance in that it's meant as a long-term debt relief solution, not a temporary fix. Your path toward relief starts with a free consultation to discuss your financial situation with a professional. From there, a debt expert will give you options for tackling your outstanding debt, whether it's debt consolidation or debt settlement.
Credit card forbearance may put a temporary solution in place that tackles one specific type of debt. Freedom Debt Relief can look at your whole debt picture and offer solutions to help you move forward.
As an example, one former client would have taken 10 to 15 years to pay off her debt. With the help of Freedom Debt Relief, she was put on a plan to be free of her debt in just three years. If that sounds like something you can benefit from, click here for a free evaluation to see how Freedom Debt Relief can help you.
Insights into debt relief demographics
We looked at a sample of data from Freedom Debt Relief of people seeking debt relief during August 2025. The data provides insights about key characteristics of debt relief seekers.
Age distribution of debt relief seekers
Debt affects people of all ages, but some age groups are more likely to seek help than others. In August 2025, the average age of people seeking debt relief was 52. The data showed that 23% were over 65, and 16% were between 26-35. Financial hardships can affect anyone, no matter their age, and you can never be too young or too old to seek help.
Student loan debt – average debt by selected states.
According to the 2023 Federal Reserve Survey of Consumer Finances (SCF) the average student debt for those with a balance was $46,980. The percentage of families with student debt was 22%. (Note: It used 2022 data).
Student loan debt among those seeking debt relief is prevalent. In August 2025, 27% of the debt relief seekers had student debt. The average student debt balance (for those with student debt) was $48,703.
Here is a quick look at the top five states by average student debt balance.
| State | Percent with student loans | Average Balance for those with student loans | Average monthly payment |
|---|---|---|---|
| District of Columbia | 34 | $71,987 | $203 |
| Georgia | 29 | $59,907 | $183 |
| Mississippi | 28 | $55,347 | $145 |
| Alaska | 22 | $54,555 | $104 |
| Maryland | 31 | $54,495 | $142 |
The statistics are based on all debt relief seekers with a student loan balance over $0.
Student debt is an important part of many households' financial picture. When you examine your finances, consider your total debt and your monthly payments.
Manage Your Finances Better
Understanding your debt situation is crucial. It could be high credit use, many tradelines, or a low FICO score. The right debt relief can help you manage your money. Begin your journey to financial stability by taking the first step.
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Author Information
Written by
Maurie Backman
Maurie Backman is a personal finance writer with over 10 years of experience. Her coverage areas include retirement, investing, real estate, and credit and debt management.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
How long does credit card forbearance typically last?
The answer depends on your credit card issuer. Forbearance generally lasts between a few months and a year.
Will credit card forbearance hurt my credit score?
No, not directly. But if your balance grows during forbearance, that could cause your credit score to drop.
Can I still use my credit card during forbearance?
It’s sometimes possible. Some credit card companies allow cardholders to use their cards during forbearance. You’ll need to see what your company’s policy is.
Do I have to pay back the full amount after forbearance ends?
Most likely, yes. Credit card forbearance isn’t meant to settle or reduce your debt. You should expect to repay your full balance once forbearance ends.
Can I negotiate a better forbearance agreement with my credit card company?
There’s no harm in trying. If the first option you’re given doesn’t work for you, you can try to negotiate a better deal. Credit card companies often negotiate forbearance agreements individually.
What happens if I miss a payment during the forbearance period?
If you’re still required to make credit card payments during forbearance, missed payments will be reported to the credit bureaus as delinquent, which could damage your credit score. You may also incur late payment fees.
Can my credit card company deny my forbearance request?
Yes. There are no federal rules requiring credit card companies to grant forbearance.
How many times can I request credit card forbearance?
There’s no set number of times you can ask for forbearance. It’s up to your credit card company to approve or deny each request you make.
Will interest still accrue during the forbearance period?
Yes, probably. It’s common for interest to accrue during credit card forbearance, but you may qualify for an exception.
Can I get forbearance on multiple credit cards at once?
It’s possible to get forbearance on more than one credit card at a time. But you’ll need to request forbearance from each credit card company individually.
How is credit card hardship different from forbearance?
Credit card hardship programs are designed to offer relief when you’re struggling to make credit card payments. They can include forbearance, deferment, and other options, whereas forbearance is a specific type of temporary relief.
What documentation do I need to apply for credit card forbearance?
The documentation you’ll need for credit card forbearance will depend on why you’re requesting it and your credit card company’s requirements. For example, if you lost your job, show proof of your unemployment.
Can I end a forbearance agreement early if my finances improve?
Yes. Credit card companies are generally fine with you ending forbearance early if you’re able to.
Will forbearance affect my ability to get credit in the future?
Forbearance might go on your credit report, but it shouldn’t negatively impact your credit score. If you stick to your forbearance agreement and stay current on your payments after coming out of forbearance, you may be able to get access to credit in the future without much trouble.
How does credit card forbearance compare to debt settlement with Freedom Debt Relief?
Credit card forbearance is a temporary reprieve from paying your credit cards. Freedom Debt Relief has a more comprehensive solution that could help you settle your debt for less and enjoy relief long term.
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