With Credit Card Debt Skyrocketing, Here Are 3 Effective Ways to Work With Card Providers and Cut Plastic Debt

Credit card companies are more than willing to work things out and aid consumers in cutting card debt.

Published: 8/24/2026, 3:00:57 PM EDT

With Credit Card Debt Skyrocketing, Here Are 3 Effective Ways to Work With Card Providers and Cut Plastic Debt — U.S. dollar bills, credit and debit cards in Washington on Oct. 4, 2024. (Madalina Vasiliu/The Epoch Times)

According to the JD Power 2026 U.S. Credit Card Satisfaction study, 60 percent of credit card customers are now classified as financially unhealthy; that’s up from 56 percent in 2025. Meanwhile, average monthly credit card spending has risen $109 year over year to $1,167, and among credit cardholders carrying a balance, 30 percent have $2,500 or more in debt. “Indebtedness is a persistent challenge, as more than one-third of financially strained cardholders say they would be more inclined to carry debt if their interest rate were capped at 10%,” the study noted.

Card experts say that a trillion-dollar headline gets attention, but the distribution of that credit card debt is more concerning these days. “When balances are growing fastest among people who are already struggling financially, it suggests some households may be relying on credit cards to cover the gap between income and everyday expenses,” Jeremy Panizzoli, a financial educator and founder of the personal finance advisory platform FinQa.com, told NTD News.

That makes credit card debt much harder for financially challenged Americans to escape. “If groceries, utilities or other recurring expenses go on a card because the paycheck doesn't cover them, paying down the existing balance solves only part of the problem,” Panizzoli said. “New charges can quickly replace the repaid debt.”

Working With Your Credit Card Company Can Curb Plastic Debt

If there’s any good news on the credit card landscape, it’s that credit card companies are more than willing to work things out and aid consumers in cutting card debt. Here are three ways card companies will likely help you cut card debt.

Stay connected with your card company in tough times

Job one when you’re falling behind on credit card debt is calling the card issuer before you miss payments, not after the account has already spiraled into serious delinquency.

“Tell the issuer clearly that you're experiencing financial hardship and ask what hardship or repayment options are available,” Panizzoli advised. “Depending on the issuer and circumstances, that could mean a lower interest rate, reduced payment, waived fees or another structured repayment arrangement. I would specifically ask, 'What hardship programs do you have, and can you reduce my APR or monthly payment while I get back on track?'”

One good reason to contact your credit card provider before you miss a payment is that card companies often offer more financial help.

“This surprises people, but issuers can do a lot more for you while your account’s still current: hardship plans, a lower rate, sometimes even pausing payments for a bit,” James Russell, a contributing analyst at ReliefGuardian.com, told NTD. “Just ask specifically for the hardship program, because the person on the phone won’t always mention it unless you do.”

Ask for financial counseling help

If you’re past that point and are behind on multiple card payments, or the balances are just too big to realistically pay down on your own, that’s usually when people start looking at debt management plans through a nonprofit credit counselor.

Once again, your card company can help. When discussing your situation, ask your card company representative for contact information for multiple credit counseling firms. Under the terms of the Credit CARD Act of 2009, credit card companies must provide a toll-free telephone number that cardholders can call to access information about approved credit counseling and debt management companies.

A good counselor can help you consolidate everything into one payment at a lower rate, or debt settlement, where a company negotiates with your creditors to pay less than you owe. “Settlement tends to make more sense once accounts are already charged off, since at that point the creditor would rather recover something than nothing,” Russell said. “The mistake I see constantly is people putting off that first call because they’re embarrassed, and by the time they finally reach out they’ve lost a lot of the leverage they had.”

Ask to have your credit card interest rate reduced

It’s also a good idea to distinguish between reducing the cost of debt and reducing the card debt’s principal. “Consumers shouldn't assume a card company will simply forgive a balance because they're struggling,” Panizzoli said. “But lowering a very high interest rate can make a substantial difference because more of each payment can finally go toward principal.”

Don’t Make These Errors When Fighting to Slash Credit Card Debt

One of the biggest mistakes is using new debt to disguise an existing debt problem.

For example, a balance transfer, consolidation loan, or new credit card can help when someone has the income and discipline to repay the debt. “But if the household is already running a monthly deficit, moving $15,000 from one lender to another hasn't eliminated $15,000 of debt,” Brian Rooney, founder at Chapter7Reset.com, told NTD.

Another mistake is draining every available dollar of savings or retirement money trying to stay current without first looking at the entire financial picture.

“I learned through my own Chapter 7 experience that there's a point where the question needs to change from 'How do I keep making these payments?' to 'Is this debt actually repayable given my income and necessary expenses?'” Rooney noted.

That doesn't automatically mean bankruptcy. “It means the consumer needs an honest assessment of the numbers and, when appropriate, advice from a qualified nonprofit credit counselor, financial professional or bankruptcy attorney before making irreversible decisions,” Rooney stated.

The views and opinions expressed are those of the interviewees. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. NTD does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. NTD holds no liability for the accuracy or timeliness of the information provided.