Credit Card Debt Secrets - Do They Really Exist?

With household consumer debt at an all-time high, it seems more than ever people are seeking credit card debt secrets to help them get out of their current state of financial hardship. Job losses and pay cuts are also on the rise, which means people simply do not have the funds available in their budgets to get out from under the strain of an enormous credit debt burden. Are there really credit card debt secrets that can relieve the financial stress, or does it really just come down to scam artists touting too-good-to-be-true results from the latest debt consolidation program or financial e-book?

Most people who are in a significant amount of credit card debt have spent a lot of time online researching various options to help their situation. From certain credit advisors who are all to quick to take a huge chunk of your money for bogus advice to costly consolidation programs that can destroy your credit, there is listing after listing in search engine results for the phrase "credit card debt secrets."

However, taking a good look at your personal debt situation and analyzing the terms of your credit cards reveal the so-called secrets to debt reduction that actually work, without costing your more money or further damaging your credit score. Check out these tips below to learn the real credit card debt secrets you need to turn-around your financial situation once and for all:

Make them Ask!

Communication with your creditors is key, especially when you find yourself in a difficult position and unable to manage the amount of your debt. The fact is creditors would much prefer to work with you and create a plan you can handle versus the likely alternatives-non-payment or even bankruptcy. Furthermore, credit companies compete against each other, which means you can threaten to cancel your card and transfer the balance to another company if they are not willing to work with you. So if you have a nasty late fee or an increased APR, call up the company and ask for them to remove the fee or lower the rate. If they do not cooperate, you can hit them where it hurts: moving to the competition!

Change Your Card-Type

This is not changing to a different company, but just asking for a different type of card within the same company. For example, some cards offer a platinum or professional brand of card that offers better benefits, including a lower APR or cash-back incentives. In most cases, if you call your company and ask to change to a different card, they will honor your request. It is in their best interest to keep you within the company rather than lose you to a competitor.

Explain Your Financial Hardship

Since we have established that credit card companies want to keep your business, it makes sense that they will want to work with you even if you have lost your job. Why would they want to work with you when you are broke? Because they would rather have a little of your money than none of it, credit card companies are often willing to ease your loan terms, eliminating fees and even lower minimum payments to get you through an especially difficult time of job loss or pay cuts. Again, this is better for them than the scenario in which you quit paying altogether or file for bankruptcy.

Keep in mind that credit card companies are businesses. Just like any retail store, they want to keep your business and prevent you from going to a competitor. For these reasons, they are often willing to bend some of their rules to keep you as a customer. The most important credit card debt secret of all is simply communication with the creditor. By respectfully explaining your financial situation and making requests for breaks, you are more likely to keep your credit in good-standing, even during a time of hardship.