iTechGuides is reader-supported. When you buy through links on our site, we may earn an affiliate commission. As an Amazon Associate I earn from qualifying purchases. Learn more
If a job loss makes a loan or credit card payment unaffordable, contact each creditor or loan servicer as soon as possible—ideally before the next payment is due. Explain what changed, share what you can realistically pay, and ask about hardship options. First map your income, essential expenses, debts, and due dates so you can make a specific request rather than agree to terms you cannot sustain.
1. Work out what you can afford before calling
Make a short-term cash-flow list using the money available now and the bills coming due. Include unemployment benefits if you qualify, severance, savings you can use, and any household contribution. Benefits depend on your circumstances and generally do not replace all lost income, so do not build a payment promise around benefits you have not confirmed. The CFPB’s job-loss guidance recommends reviewing expenses and contacting lenders; its credit-card steps advise determining what you can afford before contacting the card company.
- List essential costs such as housing, utilities, food, transportation, and insurance.
- For every debt, note the balance if known, minimum or scheduled payment, due date, and whether an automatic debit is set up.
- Calculate the amount, if any, you can pay toward each debt without putting essential expenses at risk.
- Use a bill calendar to track due dates and follow-up dates.
2. Contact each creditor or servicer promptly
Call the number on your statement or the lender’s official website. For a credit card, the CFPB says to contact the company immediately if you cannot pay the minimum. For other loans, explain that your employment and income have changed, ask what hardship options are available for your account, and ask what documents the servicer needs. Options differ by lender and account; a conversation alone does not change your contract.
Be ready to explain why the payment is unaffordable, how much you can pay now, when you think regular payments might resume, and what temporary payment or period you are requesting. Avoid promising a future payment date or amount unless your budget supports it.
#1 Best Overall
Questions to ask about any proposed arrangement
- Is there a hardship or loss-mitigation option for my account, and what are the eligibility requirements?
- Can the payment, interest rate, fee, or due date be changed temporarily?
- If payments are reduced or paused, will interest continue, and how will skipped or unpaid amounts be handled?
- Will the account be closed or restricted, and how will the arrangement or missed payments be reported?
- What amount must I pay, by what date, and through which payment method?
- Can you send the terms in writing, and whom should I contact if the arrangement is not reflected correctly?
Compare the payment and its duration, interest, fees, treatment of missed amounts, total repayment cost, account access, credit reporting, and documentation requirements. Ask for the final terms in writing before relying on them. The CFPB has warned that arrangements may not appear correctly on credit reports; the account-specific outcome depends on the creditor and agreement. See its credit card debt guidance for background.
3. Manage automatic payments and upcoming bills
If an automatic withdrawal could overdraw your account, contact your bank and the creditor quickly. Ask the bank how to address the scheduled debit and ask the creditor how to make a payment or arrange hardship terms another way. Stopping or changing an automatic debit does not cancel the debt or create a hardship agreement. Confirm which payment instructions apply and keep enough cash available for essential bills.
Rank #2
- Effective Budget Planning - Take control of your finances with the budget account book. This comprehensive planner allows you to plan and track your income, expenses, savings, and financial goals in one convenient place. With its intuitive layout and easy-to-use sections, you can stay organized and make informed decisions to achieve financial success.
- User-Friendly Layout - The budget planner features a user-friendly layout designed for easy navigation and organization. Each month, you'll find dedicated budget pages where you can set financial goals, track your income, and plan your expenses. Additional sections include debt trackers, savings goals, bill payment trackers, and more, making it simple to stay on top of your finances.
- Undated Monthly Calendar & Bonus Stickers - Featuring undated calendar each month, you'll have ample space to mark paydays, bills due, appointments, and important dates. Say goodbye to difficult writing spaces. Plus, we've included 3 cute sticker sheets that allow you to personalize your financial organizer and make budgeting more fun. Dates are not pre-printed and are completed by the user.
- Reliable and Convenient Design - Our monthly budget planner is designed for your convenience and built to last. The elastic band keeps everything securely in place, and the dual-sided pocket provides extra storage. Experience a budget planner that combines practicality and durability.
- Master Budgeting with Ease - Our financial planner includes a complete guidebook that provides valuable insights and instructions for optimal usage. From setting financial goals to tracking expenses, this guidebook offers step-by-step guidance and practical tips. Whether you're new to budgeting or an experienced user, this resource will help you make the most of your budget planner, empowering you to achieve financial success.
4. Ask about options for the type of loan
Federal student loans
Some borrowers may qualify for income-driven repayment based on income and family size. Confirm current program rules and eligibility with the loan servicer and the Department of Education; do not assume that a prior payment amount or an option described elsewhere still applies to your loan.
The Tool Desk
Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Private student loans
Contact the private-loan servicer and ask what hardship arrangements it offers. Federal student-loan programs do not automatically apply to private loans.
Rank #3
- Effective Budget Planning - Take control of your finances with the budget account book. This comprehensive planner allows you to plan and track your income, expenses, savings, and financial goals in one convenient place. With its intuitive layout and easy-to-use sections, you can stay organized and make informed decisions to achieve financial success.
- User-Friendly Layout - The budget planner features a user-friendly layout designed for easy navigation and organization. Each month, you'll find dedicated budget pages where you can set financial goals, track your income, and plan your expenses. Additional sections include debt trackers, savings goals, bill payment trackers, and more, making it simple to stay on top of your finances.
- Undated Monthly Calendar & Bonus Stickers - Featuring undated calendar each month, you'll have ample space to mark paydays, bills due, appointments, and important dates. Say goodbye to difficult writing spaces. Plus, we've included 3 cute sticker sheets that allow you to personalize your financial organizer and make budgeting more fun. Dates are not pre-printed and are completed by the user.
- Reliable and Convenient Design - Our monthly budget planner is designed for your convenience and built to last. The elastic band keeps everything securely in place, and the dual-sided pocket provides extra storage. Experience a budget planner that combines practicality and durability.
- Master Budgeting with Ease - Our financial planner includes a complete guidebook that provides valuable insights and instructions for optimal usage. From setting financial goals to tracking expenses, this guidebook offers step-by-step guidance and practical tips. Whether you're new to budgeting or an experienced user, this resource will help you make the most of your budget planner, empowering you to achieve financial success.
Auto loans
Contact the lender before missing a payment and ask what options are available. If you bought a debt-cancellation or debt-suspension add-on with the loan, review its specific cost, exclusions, and claim process before relying on it. These products are optional, add cost, and may not provide value for every borrower, according to the CFPB’s auto-loan product guidance.
Mortgage
Contact the mortgage servicer promptly and ask about loss-mitigation options. Possibilities may include forbearance, refinancing, or modification, but availability, eligibility, and consequences depend on the loan and your situation. Do not stop paying based only on an informal discussion; get the applicable terms from the servicer.
Payday loans
Contact the lender and ask whether an extended repayment plan or another option is available. Availability can depend on state law or lender policy. The CFPB explains this in its payday-loan guidance.
5. Avoid debt-relief promises that could make the problem worse
Be cautious with for-profit debt-relief firms. Warning signs include promises to make debts disappear, pressure to stop paying minimums or communicating with your card issuer, and demands for advance fees. The CFPB says a settlement company cannot collect fees before settling or resolving the debt. If you consider credit counseling, ask whether it charges a fee, how much it costs, and which services are included. The CFPB’s credit-card guidance outlines these warning signs.
Best Value
- Unlock Your Financial Potential: Harness the power of financial mastery with our budget planner Undated . It's the ultimate tool for reaching your financial aspirations while gaining a comprehensive overview of your monthly income, savings, debts, and daily expenses. Seize control of your finances and elevate your financial game.
- User-Friendly Design: Our monthly budget planner features an intuitive layout, making it easy to navigate and understand. Each month includes dedicated budget pages to help you set financial goals, track income, and plan expenses. Additional sections such as debt tracker, savings tracker, bill tracker, and more ensure that managing your financial is a breeze.
- Start Whenever, Wherever: Our budget notebook is undated, allowing you to begin your financial planner journey whenever you're ready. Compact and conveniently sized at 5.5" x 8.5", it easily fits into any bag, ensuring it's always by your side, ready to guide your financial decisions.
- Functionality with Style: Our account book not only looks elegant but is also highly functional. With features like an elastic band and double-side pocket, it enhances practicality for effective budget planning. The twin-wire binding allows for 180° layflat, keeping your financial bill calendar plan safe and organized.
- Personalize Your Path to Financial Success: Our monthly bill planner includes three sticker sheets to unleash your creativity. Planning instructions provide guidance, while inspirational quotes on each monthly calendar page serve as constant reminders to stay focused on your financial goals.
6. Keep records and check that the agreement is followed
Write down the date of each call, the representative’s name or ID, the terms discussed, and any confirmation number. Save letters, emails, statements, and proof of payments. Check later statements to see whether the agreed payment and other terms were applied. Review your credit reports; if information appears incorrect, contact the creditor and the credit reporting company to dispute it. You can also submit a complaint to the CFPB about a financial product or service.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
