Can You Pause Credit Card Payments? Understanding Forbearance and Hardship Programs

Everybody needs a breather sometimes. A little flexibility could be a welcome gift when you’re financially maxed out or worse. Under some circumstances, you can get a breather from your credit card debt.

If you’re looking for credit card debt relief, help might come from an unexpected source—the credit card company itself. Some credit card issuers have hardship programs that could give you more time to pay. 

A credit card hardship program could be a good option if you think you can get your payments back on track after a little bit of a break. 

Can You Pause Credit Card Payments?

Yes, it's possible to pause credit card payments through making an agreement with your credit card issuer. Here are two ways to secure a pause:

• Payment holiday. A payment holiday is a temporary arrangement that allows you to stop payments—either partially or in full—for a set period. 

• Forbearance. This could involve adjustments to the terms of your debt. It might include a payment holiday, but it also could temporarily reduce your payments. The card issuer might waive fees or bring your account current, without a negative impact to your credit score. 

The availability of either option and the details involved depend on the credit card issuer. If either option is on the table, you may be asked to provide documentation showing that a major life event, like an illness or job loss, has impacted your finances. 

What is Credit Card Forbearance?

Credit card forbearance is a temporary agreement between you and your card issuer that provides relief from your normal payment obligations during a period of financial hardship. While the terms "forbearance" and "hardship program" are often used interchangeably in the credit card industry, understanding the relationship between these concepts can help you communicate more effectively with your lender.

Forbearance vs. hardship programs

Forbearance is the broader umbrella term that describes any temporary modification to your payment terms. When your credit card company agrees to forbearance, they're essentially acknowledging your financial difficulty and cutting you some slack. 

A hardship program is a specific, structured type of forbearance that credit card issuers sometimes offer to customers who are facing documented financial emergencies. Think of hardship programs as formalized forbearance options. 

Both terms refer to the same general concept: temporary payment relief during tough times.

How forbearance relates to pausing payments

Forbearance doesn't always mean your payments stop. The term covers a range of payment modifications. You might be given the opportunity to pause payments entirely for a few months, to make reduced payments that are more affordable, or to continue making a full payment but at a lower interest rate. 

The specific arrangement depends on your situation and what your card issuer offers. The key is that forbearance gives you breathing room—whether through lower payments, paused payments, or better terms—while you work to stabilize your finances.

Types of forbearance available

Credit card forbearance typically falls into several categories. 

Payment suspension forbearance allows you to stop making payments entirely for a set period, usually one to three months. 

Payment reduction forbearance lowers your minimum payment to a more manageable amount while you continue making regular monthly payments. 

Interest rate reduction forbearance keeps your payment schedule intact but temporarily lowers your APR so more of your payment reduces your principal balance. 

Some issuers offer combination forbearance that might reduce both your payment amount and interest rate simultaneously.

Forbearance vs. deferment

While these terms are sometimes used interchangeably, there's an important technical difference. Forbearance typically means your payments are reduced or paused, but interest continues to accrue. 

Deferment, a term more common with student loans, could include a pause on interest as well. This is how deferment often works on subsidized federal student loans. 

With credit cards, true deferment where interest stops entirely is extremely rare. Most arrangements are forbearance, meaning your balance may grow during the relief period due to continued interest charges. Always ask your credit card company directly whether interest will continue accruing during your payment pause to avoid surprises when the program ends.

What Are Credit Card Hardship Programs?

Credit card hardship programs are ways credit card companies help their customers manage their bills during financial difficulty. This help can take several forms, including:

• Postponing payments

• Reducing monthly minimum payments

• Reducing the interest rate

• Suspending interest charges

• Waiving late fees

These programs are typically temporary, and they don’t reduce the amount you owe. They’re designed to make your payments affordable so you can eventually pay off your entire balance.

Credit card companies don’t often advertise these programs. They’d rather that all their customers continue to pay on time. Also, the amount of flexibility you could get varies from issuer to issuer.

It’s always worth asking how your credit card company might be willing to help you get to a place where you can pay what you owe.

Eligibility Criteria and Typical Terms

Hardship programs are designed to help people who face verifiable financial emergencies like medical bills, job loss, or other true hardship. The more specific you are about your situation and the more evidence you can provide, the more comfortable the card issuer is likely to be with offering a hand. 

Hardship program terms vary by credit card company, but could include:

• Lower interest rate to help you pay off the principal debt

• Adjusted payment plan that better fits your current budget

• Waiving some or all fees 

Again, these programs aren't designed to reduce the total amount that you owe. By temporarily pausing payments or making them more affordable, hardship programs could get you through a tough time until you're able to resume normal payments.

How Long Can I Suspend Payments Under a Hardship Program?

Most hardship programs are for the short term, and last from three to 12 months. 

There’s no standard. Hardship programs not only vary from one credit card issuer to another, but they’re also specific to each situation. Before you contact a credit card company about a hardship program, you should figure out roughly how long it’s going to take you to get your finances back on track. 

How to Prepare Before You Contact Your Credit Card Company

To qualify for a hardship program, it helps to explain what conditions you’re facing. These may include:

• The reason for your request. Credit card companies are more likely to work with you if they know your payment difficulties stem from a legitimate hardship. Provide evidence that backs up your situation, like a layoff or termination notice, medical bills, or bank statements showing your financial strain. 

• An estimate of how long your hardship is likely to affect you. It may help if you show that it’s just a temporary problem. For example, if you're out of work, provide the card issuer with a list of interviews you have lined up. Let the issuer know about any temp agencies or job recruiters you're working with.

• A budget for how much you can pay in the meantime. Do some detailed budgeting before you commit to a number. Cut out nonessential expenses. Be prepared to show you’re trying your best to pay what’s owed.

Talk to your creditor as soon as you realize you might have trouble making a payment. They’re more likely to work with customers that have a history of keeping their accounts up to date. Also, if you start missing payments without contacting the company about a hardship program, you are almost certain to incur late fees and negative credit reports. 

Understand Issuer Policies

Some credit card companies don't offer any hardship programs, and policies for those that do vary by issuer. Call your credit card company and speak with someone to learn how they typically handle hardship requests. If they tell you they offer hardship assistance, ask about eligibility requirements and any documentation they'll want.

Explain Your Situation and Provide Documentation

Once you start discussions with a credit card issuer, they may ask you for documentation of the information you’ve given them. Here are some examples of the types of documentation you should be prepared to provide:

• Termination notice

• Layoff notice

• Pay stub showing reduced hours, along with a pay stub showing your income before the reduction in hours

• Medical bills, including bills from your doctor's offices, hospital, labs, insurance deductibles and copays, and any other medical-related expenses

• If you're out of work due to a natural event like a tornado, earthquake, or hurricane, try to provide evidence that your workplace is closed.

Communicating with Your Credit Card Company

A key to making all this work is communicating openly and effectively with your credit card company. Here are some tips:

• Contact them before they contact you. You’re likely to find a credit card issuer more open to discussing a hardship program if you get in touch with them before they reach out to you to chase down a missed payment.

• Be calm. Financial problems are stressful, but you need to show you’re approaching yours rationally. You may find that discussing a solution takes some of the stress out of the situation.

• Understand what’s in it for them. Naturally, the credit card company wants to get paid what it’s owed. If you show them how you can do that if you just have more time or slightly easier terms, it might make sense to them.

• Get any agreement in writing. Once you’ve worked out the terms of a hardship program, have the credit card company confirm it in writing. If they send you a secure message via your online account, download a copy. This helps ensure both parties have the same understanding. It also gives you documentation to refer to if problems arise.

• Stay in touch. If anything unexpected happens or you find a need to change the payment terms, discuss it with the credit card company as soon as possible. If you don’t hold up your end of the agreement, they might void it. 

What You Should Know About Credit Card Hardship Programs

A credit card hardship program can be a real lifeline to help you keep up with your payments. Still, you should be aware of some potential drawbacks, like the following.

Effect on credit: Can pausing credit card payments hurt my credit score?

The credit impact of a hardship program depends on several factors, including how the forbearance is reported and your overall credit profile.

Freedom Debt Relief isn't a Credit Repair Organization and doesn't provide or offer services or advice to repair, modify, or improve your credit.

Forbearance notation on credit reports

When you enter a forbearance agreement, your credit card issuer might add a notation to your credit report that your account is in a hardship program. This notation itself doesn't directly lower your credit score. However, the notation is visible to other lenders reviewing your credit report. Lenders are likely to view forbearance as a red flag if you apply for new credit.

The credit utilization factor

One significant way forbearance can affect your credit score is through credit utilization—the ratio of your credit card balances to your credit limits. If interest continues accruing during forbearance while you're making reduced or no payments, your balance grows. As your balance increases relative to your credit limit, your utilization ratio rises. Higher utilization typically causes credit scores to suffer.

For example, if you have a $5,000 credit limit with a $4,000 balance (80% utilization) when entering forbearance, and interest adds $600 over three months, your utilization climbs to 92%. 

Forbearance could even cause your utilization to jump to 100% if your issuer reduces your credit limit to whatever your balance is as a forbearance condition. 

Short-term vs. long-term impact

The short-term impact of forbearance is usually modest, especially if you maintain good standing on your other accounts. 

The long-term impact depends on how you emerge from forbearance. If you successfully complete the program and resume regular payments, your credit could recover within months as you build a positive payment history and pay down your balance.

Rebuilding credit after forbearance

Once forbearance ends, focus on making all payments on time. It’s the most important factor in your credit score. Pay down your balance aggressively to improve utilization. Keep other credit accounts in good standing, and avoid applying for new credit soon after forbearance. 

Forbearance, despite potential impacts, is far better for your credit than missed payments, which could drop your score by triple digits and remain on your report for seven years.

Account suspension

As a condition of a hardship program, you might have to agree not to use your card while in the program. This may actually be a blessing in disguise. Continuing to use the account could deepen your debt problem, and ultimately put the account at risk. The goal should be to get use of the account back once you’ve straightened out your financial problems.

Continued interest accrual

Chances are, interest will continue to accrue, even if your account is part of a hardship program. If your payments are temporarily suspended, this could ultimately cause your balance to grow, and it might take longer to pay down your balance.

As you plan your future budget, remember to factor in the interest that's building on the card. If you're unsure how much that will be, ask a representative of your credit card company to help you figure it out so you can build it into your budget.   

Penalty interest rate

If your hardship program involves a reduced interest rate and payments, be careful to make the scheduled payments on time. Failure to do so could trigger a return to your regular interest rate—or even a penalty interest rate. This is a higher rate of interest card companies charge on late payments. 

Repayment Terms After the Hardship Program: How Much Do I Have to Pay Back After the Hardship Program Ends?

Hardship programs are designed to help you pay back what you owe in the long run. Continued interest accrual may cause you to owe more in the end than you otherwise would have. On the other hand, hardship programs that reduce your interest rate or waive certain fees may result in you owing less. 

In some hardship programs, you’ll be required to get completely caught up on payments when the payment pause is over. For example, let’s say your minimum payment is $250 and you get a three month payment holiday. In month four, you’d be expected to pay $1,000 (the three missed $250 payments, and the current $250 payment). This could work for some struggling borrowers, but not all. Find out your lender’s expectations.  

Once you know the specific details of the hardship program the card company offers, you should be able to figure out how much you’ll eventually have to pay. Knowing this should help you decide whether the hardship program is worthwhile. 

Staying on Track After Using a Hardship Program

A hardship problem can get you out of a jam when you get caught short financially. However, these programs are temporary measures. A hardship program only buys you time. Use that time to catch up on your payments and plan for the future. Figure out a budget that relies on as little debt as possible, and that will ultimately help you keep up with payments without special terms. 

Even though hardship programs are temporary, the chance to get your finances back on track could be a lasting benefit. Here are some ideas for establishing a financially stable future:

• Create a budget. If you don't already have one, build a budget. Tracking your income and expenses could help you manage your finances, spend less, and save more.

• Live below your means. Deliberately build a budget that uses only a portion of your take-home pay rather than every cent. 

• Build an emergency fund. Even if you have to do it a little at a time, save enough money to cover three to six months' worth of living expenses. That way, you don't have to put emergency expenses on a credit card. 

• Pay off debt. High-interest debt like credit cards can take years to pay off and cut into your ability to save for the future. Focus on chipping away at your debt, even if it means adding a few dollars to each payment. 

Budget Adjustments and Resuming Payments

If you're concerned about how you’ll pay your bills once credit card payments resume, here are some ways to trim other areas of your budget to make room: 

• Stay on top of routine car maintenance to reduce the need for repairs.

• Cancel unused (or little-used) subscriptions, like streaming TV channels and music, grooming or meal boxes, or a rarely used gym membership.

• Plan meals carefully, and eat more meals at home. 

• Adopt a cash budget to control credit card spending.

• Before making an impulse purchase, give yourself 24 hours to decide if it's something you really need. 

Pros and Cons of Using a Credit Card Hardship Program

To help you decide whether a credit card hardship program is right for you, here is a summary of the pros and cons.

Hardship program pros

Time to stabilize your finances. The primary benefit of a hardship program is breathing room during a financial crisis. Whether you've lost your job, faced unexpected medical bills, or experienced another setback, having three to six months of payment relief could mean the difference between recovering financially and spiraling into default. This pause allows you to focus on addressing whatever caused your hardship without the constant pressure of credit card bills you can't afford.

Protection from late payment reporting. When you enter a formal forbearance agreement, your credit card issuer typically won't report your account as delinquent to the credit bureaus, even though you're making reduced or no payments. This is a huge benefit because a single 30-day late payment could seriously damage your credit standing. Late payments typically remain on your credit report for seven years. By entering forbearance proactively, you could avoid this damage.

Potential fee and interest relief. Many hardship programs waive late fees, over-limit fees, and sometimes annual fees. Some programs even reduce your interest rate temporarily. If your standard APR is 22% and it drops to 8% during forbearance, more of each payment goes toward reducing what you owe rather than just covering interest charges.

Hardship program cons

Continued interest accrual increases your debt. In most hardship programs, interest continues accumulating even during payment pauses. This can significantly increase what you ultimately owe. For example, if you have a $10,000 balance at 20% APR and pause payments for six months, interest will add approximately $1,000 to your balance. You've taken a break, but you're actually further behind when the program ends.

Credit utilization impact. As interest accrues and your balance grows, your credit utilization ratio—the percentage of available credit you're using—increases. If you have a $10,000 limit with a $6,000 balance (60% utilization), and interest adds $500, you're now at 65% utilization. Higher utilization tends to lower credit scores. Additionally, some issuers reduce your credit limit as a condition of the hardship program. If your limit drops to be equal to your balance, your utilization jumps to 100%.

Tip: For many borrowers, getting financially stable is the most important consideration, not credit scores. 

Account suspension and limited options. Most hardship programs require you to stop using your credit card during the forbearance period. This prevents you from deepening your debt, but it might be inconvenient.

Temporary relief only. Hardship programs typically last three to twelve months. If your financial situation hasn't genuinely improved by the time it ends, you'll face the same problems when full payments resume—potentially with a worse financial situation if interest has been added to what you owe. 

Balance transfer alternative. Some people consider 0% APR balance transfer cards as an alternative. However, these typically require good credit and the ability to make regular payments, making them unsuitable if you're experiencing genuine financial hardship and need reduced or paused payments.

These are just general conditions of hardship programs. Whether one is the right solution for you depends on the specific terms. Pay close attention to the details of any program a credit card company offers you. 

Major Credit Card Issuers' Forbearance Policies

While most major credit card issuers offer some form of hardship assistance, specific policies vary significantly by company and individual circumstances. Hardship programs usually aren’t made public. Even if you find information online, if it’s not on the card issuer’s website, it might not be accurate. 

Understanding what to generally expect can help you prepare for conversations with your issuer, but the only way to find out what you might qualify for is to contact your card issuers directly. 

Common requirements across issuers

Most major credit card companies require similar documentation to qualify for forbearance programs. You'll typically need to provide proof of your financial hardship, such as termination letters, medical bills, or documentation of reduced income. Companies generally want you to contact them before missing payments. Waiting until after you miss a payment could limit your options. Most issuers also want to know why you think your hardship is temporary and what your plan is for financial recovery.

General hardship program timeframes

Forbearance programs typically last between three and twelve months. The exact duration depends on your issuer's policies, your account history, and the nature of your hardship. Most programs can be extended if your situation doesn't improve within the initial timeframe, but you'll need to reapply and provide updated documentation.

American Express hardship program

American Express offers financial relief programs for cardholders experiencing hardship. Amex considers requests from cardholders facing job loss, medical emergencies, natural disasters, or other significant financial setbacks. While specific terms aren't publicly detailed, American Express may offer payment modifications, reduced interest rates, or fee waivers on a case-by-case basis. Cardholders must contact American Express directly to discuss their situation and explore available options.

COVID-19 programs unavailable, but process improvements remain

During the COVID-19 pandemic, many credit card issuers expanded their hardship offerings significantly. Issuers streamlined application processes, reduced documentation requirements, and offered more generous terms to help customers quickly during the crisis. 

Specific pandemic-related programs have ended, but most major creditors made certain improvements permanent, such as clearer communication about available options and more accessible customer service for hardship requests. The pandemic demonstrated that issuers have considerable flexibility in structuring assistance programs when circumstances call for it.

Important limitations of hardship programs

No credit card issuer is obligated to offer forbearance, and policies could change based on economic conditions or company decisions. The specific terms you receive will depend heavily on your payment history, how long you've been a customer, your account standing before the hardship began, and the nature of your current situation. Always contact your issuer directly to learn about current policies and whether you qualify for assistance.

Financial Counseling and Long-Term Financial Planning

It's easy to believe you're the only one experiencing financial stress, but that's simply not true. The very reason credit card companies have hardship programs is that customers often need one. 

Your credit card company isn’t the only source of help. If you’re still having trouble getting your finances on track after participating in a hardship program, more help is available. 

If you need help finding your way out of debt, building a budget that works for you, or moving toward long-term planning, financial counseling could help. A financial counselor or debt expert could help you figure out how to get rid of debt and avoid falling into debt in the future. They could help you understand your spending patterns in a way that gives you power over them. 

Gaining control of your finances can help you move forward with confidence.

Alternatives to Credit Card Forbearance

Before committing to a forbearance agreement, consider whether other options might better suit your situation. While hardship programs offer valuable relief for temporary financial difficulties, they're not the only solution available.

Personal loan for debt consolidation

A debt consolidation loan is a new loan that you use to repay multiple debts. It could reduce the number of monthly payments you have to make, and you could end up with a payment that’s less than the total of the payments you’re making now on those debts. 

If you have decent credit despite your current financial strain, a personal loan might make sense if you can get an interest rate than the current rate on your debt. Personal loans typically offer fixed interest rates and set repayment terms, making budgeting easier. You'll need sufficient income to qualify and make regular monthly payments, which may not work if you're experiencing genuine hardship.

Balance transfer card

Some credit cards offer 0% APR promotional periods on balance transfers, typically lasting 12-21 months. This can provide breathing room to pay down debt without accruing interest. However, balance transfer cards require good credit for approval and often charge balance transfer fees of 3-5%. 

Juggling new credit cards could be a risky strategy for someone experiencing hardship. If you qualify and you go this route, consider closing your old accounts once you pay them off, to reduce the chance of acquiring more debt.

Debt management plan

Nonprofit credit counseling agencies can help you create a debt management plan (DMP) that consolidates your payments. Your credit counselor will negotiate with your creditors for lower interest rates and waived fees. 

DMPs typically require substantial monthly payments because they are designed to fully repay your debts in three to five years. If you’re struggling to make credit card minimum payments now because of your hardship, you might not be a good candidate for a DMP. 

Debt settlement

For those with significant debt and a financial hardship, debt settlement may be worth exploring. Debt settlement means convincing your lender to accept less than the full amount you owe and forgive the rest. You can negotiate debts yourself or work with a professional debt settlement company. 

Other Options to Help You Manage Credit Card Debt

A hardship program may help you escape credit card debt, but it isn’t always the right answer.

Consider some alternative forms of debt relief, including: 

• Debt consolidation. A consolidation loan is a new loan that you use to pay off multiple existing debts. It’s an option to consider if you qualify for a lower interest rate compared to what you’re currently paying.  

• Debt settlement. Sometimes, creditors are willing to take less than the full amount you owe and forgive the rest. You can negotiate debts yourself or work with a professional debt settlement company.

• Bankruptcy. The most common types of bankruptcy for individuals are Chapter 7 (wipes away eligible debts) and Chapter 13 (a payment plan). Creditors can’t opt out. All types of bankruptcy temporarily stop collection efforts and give you a legal process for dealing with your debts.

Looking for debt relief in Missouri or across the country? The first step is the most important one—learn more.