Most credit card and personal loan companies have an internal hardship program. On a hardship plan, lenders like Merrick Bank will temporarily lower your interest rate for about 3-12 months. Sometimes, they may lower your payment as well. Obviously, your financial hardship must be compelling to qualify for the benefits.

Most credit card companies will settle your credit card debt or personal loan for less. In order for a creditor to forgive a portion of your debt, you would need to be severely delinquent. Usually more than 6 months behind where your credit is ruined. At that point, most creditors would be willing to receive a lump payment of 40-60% of the balance and forgive the remaining balance. However, the amount forgiven would typically be considered taxable income by the IRS.

Merrick might be able to lower your payment if you qualify for their hardship program. Credit Counseling (Debt Management Program) has had great success with lower payments with Merrick Bank as well. A recent study shows that DebtWave Credit Counseling, Inc. lowered the average client's payment significantly in 2024.