What Is the Hardship Program

A credit card hardship program is typically a payment plan that you negotiate with your card’s issuing bank. The bank may waive fees and/or lower interest rates over a specific time frame — often a short-term period such as three months or longer.

What qualifies for financial hardship?

Requirements to obtain financial hardship under the Credit Law. … There must be a reasonable cause for the financial hardship e.g. Illness or unemployment. If the variation was made as requested, the consumer must “reasonably expect” to be able to discharge their obligations (s. 72(1) NCC).

What is a hardship application for?

A hardship letter explains to a lender the circumstances that have made you unable to keep up with your debt payments. … Reducing your payments. Securing a lower interest rate. Extending your loan term.