Many individuals that are in dire financial straits are there at the behest of their credit card debt. If this is you, then you should start looking for ways to help eliminate or mitigate your expenses, and create a comprehensive financial plan to help you budget better in the future. But in the meantime, there are some things you can do to help open the line of communication between yourself and your creditors.
You Vs. Them
A lot of people are unaware that they are completely capable of negotiating with their credit card companies. In fact, the moment you realize that your debt is too much to handle, when it comes to your credit cards, it is advisable to get in contact with your credit card companies as soon as possible. If you let credit card companies know that you are struggling early on, it is easier to come to a reasonable solution regarding payments than if you wait until you have missed six or seven payments.
Although credit negotiation can be tough, sometimes you can get a credit card company to agree to debt settlement. This is a process where you offer 25 to 35% of the total debt that you owe as payment in full. However, for this to be considered a viable option, your account will generally need to be more than 90 days past due. Stay aware that debt settlement is not a magic bullet and your credit rating will end up suffering should you choose this option. However, this is still a better idea than sitting around and letting credit card debt grow unchecked.
Be sure to get in contact with your credit card company as soon as possible when you realize that you are in over your head. Open lines of communication will generally result in a more favorable response.