When you are in trouble with your credit cards, you need to consider seriously reducing the amount of debt you owe. Many people believe that means paying off what you owe pure and simple. Except it isn’t pure or simple. In fact, if it ever was pure and simple you wouldn’t be in a crisis now. Credit card debt is more than just what you owe, it is also a projected debt, meaning that interest rates and compounding schedules affect your balance in ways you have little control over.

Credit card reduction involves a lot of honesty, both with yourself and your creditors, and negotiation. It isn’t simply a matter of what you owe, or what you can afford to pay. Reduction is the process of reducing your credit card debt to a manageable level. Primarily what credit card reducing agencies do is to negotiate a lower payment with your creditors in exchange for freezing your account. Many require you to agree to refrain from incurring debt for the life of your commitment with them.

This isn’t a bad way to reduce your credit card debt but you do need to be careful that the agency you work with is ethical and will follow through on their end of the deal. One of the biggest frauds around right now is someone promising to get your credit card payments reduced and then walking away with your money.

Credit card reduction services do cause a negative impact on your credit score. If you are getting collection calls for late payments and don’t expect the situation to improve in the near future, though, it is an option worth considering. The black mark from debt reduction will be less severe than declaring bankruptcy and it will not stay with you as long as a bankruptcy will.