3 ways your credit card company can help you cut your debt (2024)

If you're facing the choice betweenpaying your credit cards on time and covering other expenses, making a decision can be stressful. But, it may help to know that help could be on the horizon — and that help could come from a surprising place.

Credit card companies will often have programs in place or other ways to help their customers repay what they owe on their cards. So, if you're struggling to find the money in your budget to pay your credit cards, here's how your credit card company may be willing to help you out.

Find out how a debt relief service could help you today.

3 ways your credit card company can help you cut your debt

Credit card companies may be willing to help you when you're facing insurmountable credit card debt. Here are three ways credit card companies can help in these cases:

Credit card debt forgiveness

Credit card companies would typically rather receive a portion of what you owe than no payment at all. In turn, your card company may be willing to forgive part of your card balance. Finding out whether this is possible in your case may be as simple as making a phone call.

"Let the lender know that you're trying to make good on your debts," says Steve Azoury, ChFC and owner of Azoury Financial. "Ask if they would erase some of the debt in order to make it workable."

While you may be able to navigate this process on your own, it could help to work with a professional who has experience in this. There aredebt forgiveness expertsyou can reach out to and improve your chances of asuccessful negotiation with the credit card company.

Learn more about your credit card debt forgiveness options now.

Better rates and terms through a debt management service

Credit card debt forgiveness can help you better manage what you owe on your debts, but these programs can alsohurt your credit score and have tax implications. If you'd prefer a different approach, it may benefit you to consider a debt management serviceinstead.

Debt management services typically negotiate your interest rates and payment terms with the credit card companies on your behalf. There may be a slight impact on your credit score initially if you enroll in one of these programs. However, your credit score may improve over time as you make regular payments on what you owe.

And, since this type of service does not involve debt forgiveness, there typically aren't tax implications to worry about.

Credit card hardship program

If you're facing short-term financial hardship, a credit card hardship program may be what you need. These programs, which are offered by the card issuers, are designed to offer borrowers temporary relief during periods of financial hardship.

To learn whether you qualify for this type of program, follow these steps:

1. Call the phone number on the back of your credit card to speak with the customer support staff.
2. Explain that you're facing financial challenges and ask about programs that could reduce your payments.
3. Answer any questions the representative asks.

During this process, you will likely be asked about your income and financial obligations. You may also have to explain what led to the financial hardship and outline how long you expect it to last.

Keep in mind, though, that not all lenders offer hardship programs. And, if you find that you don't qualify for a hardship program, you may qualify for help through a debt relief provider.

The bottom line

Your credit card company may be willing to help you when you're overwhelmed by your card debt. And, if you're unable to take this route, working with a debt relief provider could help you pay off what you owe faster— so, chances are, you have options to tackle your debt either way. Learn more about your debt relief options now.