HSBC credit card hardship programs.
HSBC is also trying to help thousands of consumers deal with their debt by offering them hardship programs. They are yet another bank that has decided it is better to work with customers for partly their own reasons. Basically they have decided it is better to get borrowers to pay some of their credit card bills rather than see the customer default on their debts, or file bankruptcy, or otherwise not pay HSBC anything.
If you read below you will find some examples of how people are working with HSBC to get out of debt. It is possible to do, if the individual is persistent and takes the proper steps. You need to contact them, push your case, follow up, and do what it takes to get debt relief. Or you can try to a debt management plan with HSBC.
Examples of HSBC hardship programs
- One customer had a HSBC Platinum Mastercard with a balance of right around 20K. Their card had an interest rate of 31% because of a few missed payments and some recent credit score issues. They called HSBC to ask for assistance.
The representative from HSBC asked various questions and took down information for the hardship program they offer. After further review, they came back and they said that they would lower their interest rate to 0% and came up with a payment plan that called for the person to $350 per month for 60 months. They also indicated on the credit report that the card was paid in full, so as to not hurt their credit scores anymore. But they did need to close down the credit card account. The customer also spoke to their debt settlement department and they were willing to write off $2,000 from the unpaid debt. These are some very good deals.
- Another struggling customer called them to try and work out a payment plan with HSBC as they previously did with a few other card companies. The lender needed to close the account, and also lowered their interest rate on their existing debts at the same time though. While it went down to “only” 15%, it was originally in the low twenty percent range. They had to make an initial payment of $150 to start the hardship program, and have 60 months to pay off the debt.
- Some people have had difficulty in negotiating with HSBC, as shown by a customer who claimed they could never get the right person from the company to speak too. So in this case, they asked a third party for support in initiating the hardship plan or even a DMP with the lender. So it is always important to note that oftentimes negotiation is involved, and learn how to negotiate credit card debt.
- An individual who had their spouse lose their job needed some relief, and they really just wanted more time to pay down their existing debts. So a call was placed to HSBC, and the end result was the bank enrolled them into a payment plan, which they referred to as being a hardship type program. The plan basically reduced the interest rate to about 6% for a year, then it would increase back to the standard rate provided the customer kept up with their payments.