So many people have crushing credit card debts and wonder how to do credit card workouts.

I publish the Mortgage Relief Formula home study course and one of the things we cover is how do work out things with your credit card companies.

FIrst of all, there are several types of credit card companies and you have to approach them a bit differently. So let me explain the three types of credit card banks and how you should approach them.

First, there are subprime credit card companies that lend at high interest rates to people with low credit scores. These are tough people to deal with unless you really play hardball.

Then there are the mainstream credit card banks. Capital One, Citi, Bank of America and so forth. MBNA was gobbled up by Bank of America, and others like Bank One have been gobbled up by Chase. But these companies are the ones that primarily work mail order and offer products at rates ranging from maybe 7% to 27%. They have few or no branches and are exclusively dealing with you through mail and phone and the web.

The mainstream credit card banks are set up to deal with large volumes of people and the front lines are the customer service department. They also have departments beyond that including collections and sometimes a special situations or credit card workout department that work with people who are negotiating with the company.

Third, there are the regional banks. BB&T is an example. They don't have the most competitive rates but they market primarily to their existing account base through their extensive branch network.  The regional banks will go out of their way to work things out with you if you are missing a payment or two, or need more time to pay.

With most of the companies if you request a lower interest rate, they will say no. You have to be dealing with their collection department or special situation department to get exceptions. In fact your rate may be 28% and the customer service person will say "No." These default rates are punishing you even though you have never made a late payment.

What you will need to do is to get them to lower your interest rate. And to lower your payments by giving you longer to pay. I would aim to pay off all my credit card debts within 60 months because that is the maximum that a chapter 13 bankruptcy provides for. And I would ask them to lower my interest rate or reduce principal balances to make that possible. You will have to deal with them all in a systematic way. And you can negotiate for them to report favorably on your credit about a year into the workout.

Watch This Video for More Information

Sign Up Below with Your Name and Email and Watch the Video Now

It makes no sense to take the rest of your life to pay off credit card debts. Take steps now to assure a debt free financial future. Learn more about credit cards and how to avoid bankruptcy, how to stop foreclosure and a lot of other important financial facts you won't find anywhere else. I never share your information with anyone.