What Bank of America's Hardship Program Does
Bank of America's hardship program is a set of options the bank offers to borrowers who are struggling to make their regular payments on credit cards, mortgages, or other loans. The program does not erase your debt, but it can lower your monthly payment, reduce your interest rate temporarily, pause payments for a set period, or restructure what you owe so it becomes manageable again. You contact the bank directly to discuss your situation, and a representative works with you to find an option that fits your circumstances.
The program exists because banks know that a borrower who cannot pay at all is worse off than one who pays something, even if that something is smaller than the original agreement. Bank of America calls this their Financial Hardship Program, and it covers credit cards, home loans, auto loans, and personal loans. The specific options available to you depend on which product you have and how far behind you are.
Key Takeaways
- Bank of America's hardship program offers payment reductions, interest rate cuts, payment pauses, or loan restructuring when you cannot make your regular payments.
- You must contact the bank yourself — they do not automatically place you in the program when you miss a payment.
- The bank will ask for details about your income, expenses, and the reason your situation changed, so have recent pay stubs and bills ready before you call.
- Hardship arrangements typically last 3 to 12 months, after which your original terms resume unless you work out a new arrangement.
- Entering the program may affect your credit score in the short term, but staying current on the modified payments protects you from further damage.
Types of Hardship Options Bank of America Offers
Bank of America structures hardship relief around five main paths. A payment reduction lowers your monthly amount for a set time — useful if your income dropped but you still have some cash flow. An interest rate reduction cuts the rate you pay on the balance, which means more of each payment goes toward principal instead of interest. A payment deferment lets you skip payments for a period (usually 3 to 6 months on mortgages, shorter on credit cards) and then resume, often with the skipped amount added to the end of the loan. A loan modification rewrites the terms — extending the payoff period, changing the rate, or both — so the new payment fits your budget. A forbearance agreement on a mortgage temporarily reduces or pauses payments while you work toward a permanent solution.
Which option you get depends on what you owe and what the bank thinks will actually work. If you have a credit card and lost your job, a payment reduction might be the answer. If you have a mortgage and your income is stable but temporarily reduced, a rate cut or deferment might make sense. The bank's goal is to keep you paying, so they listen to what you can actually afford.
How to Contact Bank of America About Hardship
Call the customer service number on the back of your card or statement, or go to your local branch in person. Tell them you are experiencing financial hardship and want to discuss your options. The bank will route you to a specialist — sometimes called a hardship team or loss mitigation department — who handles these conversations. Have ready: your account number, recent pay stubs or proof of income, a list of your monthly expenses, and a clear explanation of what changed (job loss, medical emergency, reduced hours, divorce, etc.).
The bank will ask you to describe your situation in detail and may request written documentation. Some branches can start the conversation, but the actual decision usually comes from the bank's hardship department after they review your file. The process typically takes 1 to 3 weeks from your first call to a decision, though it can stretch longer if the bank needs more information from you.
What Happens to Your Credit During Hardship
Entering a hardship program does not automatically damage your credit, but it may. If you are already behind on payments when you call, the missed payments are already on your report. A hardship arrangement itself is not a separate mark — the bank does not report "hardship program" to the credit bureaus. What matters is whether you stay current on the modified payments.
If you agree to a lower payment and make it on time, your credit stabilizes and begins to recover. If you miss the new payment, the bank treats it like any other missed payment and reports it. Some hardship arrangements are noted in your account history, which lenders can see, but the main thing lenders care about is whether you pay what you agreed to pay. The longer you make on-time payments under the new terms, the less the original missed payments matter to your score.
What Happens When Your Hardship Period Ends
Most hardship arrangements are temporary — typically 3 to 12 months depending on the product and your situation. When the period ends, your original terms resume unless you and the bank agree to something different. If you had a payment reduction, your payment goes back up. If you had a deferment, the skipped payments are added back in. If you had a modification, the new terms become permanent (that is the point of a modification).
Before your hardship period ends, contact the bank again if your situation has not improved. You may be able to extend the arrangement, move into a permanent modification, or switch to a different option. The bank prefers to work with you on a second arrangement rather than watch you fall behind again. If your situation has improved, you resume your original payments without further negotiation.
Hardship Program vs. Other Debt Relief Options
A hardship program is different from debt consolidation, credit counseling, or bankruptcy. Consolidation combines multiple debts into one new loan, usually with a different lender. Credit counseling teaches you budgeting and may include a debt management plan where a nonprofit negotiates lower payments with all your creditors at once. Bankruptcy is a court process that can erase or restructure debt but has serious long-term consequences.
A hardship program is a negotiation with one lender about one debt. It is faster than bankruptcy, does not require a nonprofit intermediary, and does not combine your debts. It is also less formal than a debt management plan — you are working directly with the bank, not through a third party. If you have multiple debts, you would need to contact each lender separately about hardship options, or you might explore credit counseling or consolidation to handle everything at once.
Common Mistakes to Avoid
Do not wait until you have missed multiple payments to call. The bank can help you before you fall behind, and the earlier you reach out, the more options you usually have. Do not assume the bank will automatically place you in hardship — you have to ask. Do not exaggerate your hardship or lie about your income; the bank verifies what you tell them, and dishonesty can disqualify you or lead to fraud charges.
Do not ignore the terms of the hardship agreement once you have one. If you agreed to a new payment amount, make that payment on time every month. If you cannot, call the bank again rather than missing the payment. Do not assume the hardship period is permanent; mark your calendar for when it ends and plan ahead. Do not take on new debt while in hardship unless absolutely necessary — it signals to the bank that you are not actually in crisis, and it makes your situation worse.
Frequently Asked Questions
Will Bank of America forgive part of my debt if I enter hardship?
No. Hardship programs reduce payments or interest, but they do not erase debt. You still owe the full amount; the bank is just giving you time and breathing room to pay it. In rare cases, after you have made all modified payments successfully, the bank might consider a small settlement, but that is not may provide and is not part of the standard program.
Can I be denied for a hardship program?
Yes. The bank will deny you if your income is high enough that you can afford the original payment, if you have missed payments on other accounts with Bank of America, or if you recently entered hardship and defaulted. The bank also denies requests that seem fraudulent or where you cannot document your hardship. If you are denied, ask why and whether you can reapply after your situation changes.
What if I have multiple Bank of America accounts?
You can request hardship on each account separately, and each one is evaluated on its own. A credit card hardship does not automatically explore to your mortgage. Contact the bank for each product you need help with, or ask during your first call whether they can review all your accounts at once.
Does hardship affect my ability to use my credit card?
It depends on the arrangement. If you are in a payment reduction or rate cut, you usually keep using the card. If you are in a deferment or modification, the bank may freeze the account so you cannot charge new purchases while you are catching up. Ask the bank what happens to card access before you agree to the arrangement.
Can I get out of a hardship agreement if my situation improves?
Yes. If you come into money or your income increases, you can call the bank and ask to resume your original payments. There is no penalty for ending hardship early. The bank will not force you to stay in the program if you can afford the original terms.