It seems like almost everyone is getting a bailout these days. Banks and automakers who are in bug financial trouble have received help in continuing to survive while they work their way out of financial distress. Homeowners who are in foreclosure or close to it are finding that programs are in place to lighten their burdens and buy them some time to come up with the money to make their mortgage payments current again. The worse the economy gets, the more people line up looking for a bailout.

So what about people with credit card debt? As the economy has deteriorated over the past year, some families have had no choice but to pile up charges on their credit cards, hoping to find a way to pay it off later. Credit card debt can be a slippery slope though, and there are millions of people in the US who are in over their heads when it comes to credit card debt.

Some of these people are finding that credit card companies are in the mood to negotiate in order to have a chance to collect on some or all of the money that they have loaned to cardholders. Don’t be confused though-this is NOT a bailout. You won’t find card companies who are willing to simply forget that you owe them thousands of dollars. However, you are increasingly likely to find card companies open to the idea of forbearance in working with cardholders.

Forbearance programs can temporarily adjust the terms between card issuers and cardholders, including minimum monthly payments, fee reductions, and lower interest rates. Citibank and Bank Of America are two large issuers of credit cards who are happy to discuss forbearance programs with customers. Citi currently has more than 350,000 people in its forbearance program. Bank Of America adjusted terms on over 850,000 credit card accounts in 2008 alone.

A credit card company has millions of customers with billions in personal loans. If those customers fail to make payments, there is no collateral for the credit card company to collect on to make themselves whole again. It’s in their best interest to help cardholders make payments, even if those payments don’t meet the preferred terms of the credit card company.

If you’re in a position where a forbearance program might be a good fit for you, it’s never too early to call and at least open a dialogue with your card issuer. These programs do take time to put into place however, so getting the ball rolling early is the right move for cardholders. With the financial strain on financial institutions, including credit card issuers, you are likely to find them more willing to talk than ever before. Call early though, before your situation becomes too dire to salvage.

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