American Express Credit Card Debt Hardship Programs

American Express Hardship Program

The five largest credit card issuers by outstanding debt are Chase, American Express, Citibank, Capital One and Bank of America , according to WalletHub. These five financial institutions collectively control more than 50% of the existing credit card market. And sitting in second place behind Chase is American Express.

As last reported 2023 by the Nilson Report, American Express clients have a total credit card debt load of $150 billion. They trail JP Morgan Chase by $61 billion.

American Express Credit Card Hardship Programs

If you find yourself struggling with credit card debt, hardship programs can help. Contact American Express directly and let them know your personal hardship. Provide as much details as possible about your financial situation. They will likely ask about your monthly income and expenses. Telling them that you are simply looking for a lower interest rate and payments won’t suffice. You must have a compelling hardship such as job loss or medical emergency to qualify.

Any concessions granted by American Express will likely be temporary. A lower interest rate might last less than 12 months. Take advantage of that time and attack your debt with extra payments. Some creditors might reduce your credit limit once they approve you on their hardship plan.

If you have no luck getting concessions or want a more long term benefits, credit counseling is your next best option. American Express works very well with nonprofit organizations offering their clients interest rates usually below 10%. Payments typically get lowered as well. Your credit card will be closed on their debt management program. This can be viewed as a good thing for some as the temptation to continue using the card is eliminated.

DebtWave has been helping American Express clients for more than 20 years

DebtWave has worked with American Express since 2002 helping clients pay off debt at lower interest rates. Most clients add other credit cards to their plan such as Capital One and Synchrony accounts. Clients make payments to DebtWave via ACH either monthly, semi-monthly, weekly or biweekly and then DebtWave disburses payments to their creditors. Most clients complete their program and become debt free in less than 5 years. DebtWave has a 68% successful completion rate.

DebtWave conducted a study during a fifteen year period (2010 through 2024) which they enrolled 7,929 American Express accounts onto their program. They discovered that 5,303 successfully paid their balance in full. And more than 791 clients are still actively paying down their debt.

Here are some additional stats from the study:

Average Starting Debt Per Account
$6,889
Average Payment on Own
$214
Average Payment on DMP
$139
Average Payment Reduction %
35%
Average APR on Own
20.43%
Average APR on DMP
7.34%
Average Months to Payoff
36
Total American Express Credit Card Debt Enrolled
$54.6 million
Total Debt Paid Off
$33.7 million

 

The Dream of Getting Out of Debt on Your Own is Possible

Paying back your credit card debt seems unrealistic. But it has proven to be achievable by thousands of DebtWave clients. If you would rather tackle the debt on your own, it can be achieved. Create your own plan. The first step is lower interest rates. High interest rates (25-30% APR) on credit cards make it challenging. This would require you to significantly increase your minimum payments (at least 2x) to make progress.

If you have your rates reduced to less than 10%, then use a payoff calculator or google spreadsheet to create a plan. Find ways to increase income and reduce expenses. Stay motivated and refrain from using cards again. Build an iron clad budget that accounts for all expenses.

 

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