Good News for Credit Card Holders

Arriving in mailboxes across the nation are letters from creditors that are offering help to those who are struggling with their credit card debt. The card issuers have hardship programs available to those who are in the worst positions.

What to expect. Card issuers are taking a more conciliatory stance with consumers in an effort to stave off additional delinquencies and help struggling card holders begin to get a handle on their accounts and start making payments once again.

Here are some of the details being offered by Capital One to card holders:

Past due fees suspended. Customers who receive letters are being notified that their account has not been assessed a past due fee for the current month if they are at least three payments behind in making minimum payments.

Bring account current with just one minimum payment. The offer being touted is to be able to bring the account current by making just one minimum payment. This at least brings the account to 'par' status and then the customers can begin to work on the balances from there.

Offer of a lower payment with a phone call. Even if you are unable to make a minimum payment, the card issuer is asking that customers call in order to get a lower payment amount by entering the program. Additional suspension of past due fees. If a customer calls for assistance and enters the program of making three additional monthly minimum payments, then the past due fees will be suspended for two additional months (for a total of three).

Re-instating the account as current with participation. Once the program has been successfully followed, card holders will find that their accounts have been re-instated as current.

Do not avoid contact with card issuers. This represents aggressive action on the part of card issuers and sends a signal that communication with them is a must. If you are behind on your payments and have been looking for a way to work through your balances, now is the time to call.

Those who truly need the help are encouraged to call. In fact, you can call all of your credit card issuers and find out if they are offering similar programs. However, if you are not in need of this plan, then you should avoid calling as calls such as this can put your account in adverse action status.

Further examination of your credit card accounts warrant a decision of whether or not to keep them open as opposed to moving the account in a balance transfer to another card and taking a credit score hit as well. This is an individual decision which must come after reviewing your accounts and circumstances surrounding the balances. Taking steps to improve your situation is recommended and can help you move towards a better, overall credit picture. Use the above in your strategy to eliminate balances and get back on track. You will be in a better position as a result. This is, indeed, good news for card holders.