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Creditor Hardship Plans: How They Work and How to Get One

by Jesse Campbell on
4/22/2026
in Repaying Debt
Young woman reviewing a bill.

Creditor hardship plans are programs offered directly by creditors to help borrowers who are struggling to make their minimum monthly payment. These programs come by many different names, but they are typically short-term and only available by request.

If a temporary or long-term hardship is making it difficult to stay current with your bills, one of your first steps should be to contact your creditors and see what kind of help they may be able to provide.

Some won't help you, and some may direct you toward third party resources like credit counseling. But many offer hardship programs and other solutions to help you avoid defaulting on your account.

What can I expect from a creditor hardship program?

Every creditor has different policies and procedures when it comes to clients experiencing a hardship. While most creditors offer some form of hardship assistance, the actual details of the program will be different from creditor to creditor.

Generally, a creditor hardship program is likely to offer one or more of the following features:

  • Reduced interest rates
  • Temporarily reduced payments
  • Interest-only payments 
  • Deferred payments
  • Temporary payment pause (typically while interest is still being charged)

Whatever benefits your creditor offers, they're usually temporary and intended to help you get through a short-term financial setback.

What does my creditor call their hardship program?

You don't need to know the name that your creditor uses in order to request help when you're having a hard time. That said, there are some common names for creditor hardship plans:

  • Flexible payment options
  • Settlement/Settlement offers/Settlement options
  • Payment arrangements
  • Account resolution options
  • Flexible repayment options
  • Limited payment plans
  • Payment plans/Payment plan options/Modified payment plan
  • Payment extensions
  • Installment payment plans
  • Short‑term repayment options
  • Income‑based payment discussions
  • Customer assistance programs
  • Payment relief program
  • Financial assistance plans
  • Deferment/Deferred payment arrangements/Payment deferral program
  • Temporary hardship assistance
  • Forbearance program
  • Reduced interest rate program
  • Account Re‑Aging Program

Before you call: assess your finances 

Part of the hardship process is making the case for why you need help. Creditors may be willing to help, but you'll often need to prove that you need the help first.

So the first step is to get a clear picture of your financial situation. How bad is it? What can you reasonably afford? How long do you expect this hardship to last?

Gather information about your income, expenses, and the specific debts causing difficulty. Consider your hardship and what you're already doing to address it.  

Communicate quickly and honestly 

Don't make your creditor chase you. While there may be no way to stop debt collection activity if you stop making timely payments, letting your creditor know as soon as possible gives you the best chance to avoid negative outcomes like collection calls and damage to your credit score.

When communicating with your creditor, be honest about your financial challenges. Avoid misrepresenting your situation and express your willingness to work with the creditor to find a solution that works for both parties. Be clear about your commitment to making things right as quickly as possible. 

Tips for communicating with a creditor

  • Be respectful. You're probably feeling stressed out, but try to keep your interactions respectful and to-the-point.
  • Be persistent. If you're not getting the help or answers you need, you may need to try again or ask to have your request elevated. It's possible that the creditor simply can't help you, but don't be afraid to be persistent.
  • Get it in writing. If you do agree to a limited or long-term hardship plan, make sure you understand the terms. If possible, ask to have the new terms sent to you by mail or email.
  • Follow-up. If you've made your request online or by mail, follow-up to make sure it was received if you don't get a response in a timely manner.

Sample script for requesting a hardship from your creditor

Using your own words is usually the best option, but if you're not comfortable or aren't sure how to approach the conversation, here's a rough suggestion of how to ask your creditor for a hardship plan: 

Hello. I'm reaching out to discuss some financial challenges I'm currently dealing with.

[If you're comfortable sharing, provide an example of what you're dealing with.]

Because of this, I'm finding it difficult to manage my monthly payments right now.

I'm committed to meeting my financial responsibilities, but that's just not possible for me right now. I'm reaching out to see if there's any assistance or relief you may be able to offer during this challenging time.

I'm open to restructuring my payments, temporarily adjusting my payment schedule, or any other options that might be available.

Your understanding and help would be immensely appreciated and would be a massive relief during this difficult period.

There's no guarantee that a creditor will be able to assist you, but you won't know until you try. And if your creditor isn't able to help, consider connecting with a nonprofit financial counseling agency like MMI. We offer debt management plans (DMP) and other resources to help you reduce debt and improve your credit score.

On average, MMI DMP clients get interest rates below 8% and save close to $50,000 when compared to continuing to pay on their own.

Tagged in Negotiating bills and fees, Managing a loss of income, Debt strategies

Jesse Campbell photo.

Jesse Campbell is the Content Manager at MMI, with over ten years of experience creating valuable educational materials that help families through everyday and extraordinary financial challenges.

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