Hardship Letter for Credit Card Debt
If you are struggling to keep up with credit card payments, writing a hardship letter to your provider is often a practical first step. Credit card companies have dedicated teams for financial difficulty and are required by the FCA to treat customers in hardship fairly.
When to Send a Hardship Letter to Your Credit Card Provider
A hardship letter may be helpful if you are experiencing any of the following:
- Your income has reduced (redundancy, reduced hours, illness)
- You are only able to make minimum payments and the balance is not reducing
- You are missing payments or expect to miss payments soon
- You have multiple debts and need to prioritise which to pay first
What to Include
Your letter should clearly explain:
- Your account details — account number and name
- What has changed — briefly explain why you are in difficulty
- What you can afford — a specific monthly amount you can realistically pay
- What you are asking for — interest freeze, reduced payments, or a payment plan
- Your willingness to cooperate — show you are proactive about resolving the situation
What Your Credit Card Provider Must Do
Under FCA rules (CONC 7.3), creditors must:
- Consider your circumstances sympathetically
- Not pressure you into paying more than you can afford
- Consider freezing interest and charges
- Signpost you to free debt advice
What Happens After You Send It
Most credit card providers will:
- 1Acknowledge your letter within 7–14 days
- 2Ask for an income and expenditure statement
- 3Offer a payment arrangement or hardship plan
- 4Freeze interest and charges for a period (often 3–6 months)
If they do not respond or refuse to help, you can escalate to the Financial Ombudsman Service.
Important Information
This letter template provides general information and is not financial advice. Your situation is unique — for personalised guidance, consider contacting StepChange (0800 138 1111) or Citizens Advice (0800 144 8848), both of which are free and confidential.
Frequently Asked Questions
Will a hardship letter affect my credit score?
Your credit file may show a 'payment arrangement' marker, but this is generally less harmful than missed payments or a default. Creditors may also add a note that you are in financial difficulty. Speaking to your provider proactively is usually better for your credit file than simply missing payments.
Can my credit card company refuse my hardship request?
The FCA requires credit card companies to treat customers in financial difficulty with forbearance. They should not refuse to consider your request. If they do, you can complain to the Financial Ombudsman Service.
How long will a payment plan last?
This depends on your situation and the amount owed. Payment plans typically last 3–12 months, after which your situation is reviewed. Some providers offer longer arrangements for larger debts.
Should I stop paying while I wait for a response?
It is generally better to continue making whatever payment you can afford while waiting. This shows good faith and avoids additional missed payment markers on your credit file.
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