Really can't pay? Pick up the phone.

They're the punishing conditions that come with a credit card: interest rates, late fees, monthly minimums. As much as you grumble, there's little you can do.

Enter the recession, and a shift in the rules.

With delinquencies and charge-offs on the rise, credit card companies are quietly negotiating terms with people in need of relief. The hope is to recover what money they can, rather than letting the debt go entirely uncollected.

“The thinking used to be that you needed to be late with a few payments for a modification,” said Bill Hardekopf, CEO of LowCards.com. “But the mentality of issuers has changed dramatically. They want to do everything they can to collect this money.”

This year, Bank of America expects to issue 1.2 million credit card modifications, up 20 percent from 2008. Chase says it recently expanded eligibility for its repayment program to those in earlier stages of delinquency.

That's not to say just anyone can rewrite the terms of a card agreement; adjustments are still reserved for those in true financial distress. And in general, card companies are more likely raising rates and fees, and lowering limits.

But if you're having trouble paying the bills, it could be worth calling your credit card company to request more manageable terms.

The candidates

Credit card companies are tight-lipped about who qualifies for adjustments, but experts say lenders are easing up on eligibility these days.

“If you demonstrate that you only have so much left over after covering your expenses, that gives you some ammunition to present a case,” said Ben Woolsey, director of consumer research at CreditCards.com.

Generally, you want to show you can't keep up with payments for much longer under your current circumstances.

Among the factors a lender will consider are your income, your payment history, the size of your balance and any other debts and assets. A recent job loss or other financial emergency could be another reason for requesting leniency.

You don't necessarily have to be behind on your bills.

The options

Among the most common ways a credit card company could ease your debt are forbearance, lower interest rates and debt management plans.

Forbearance is when a lender gives a temporary reprieve on payments. Late fees are generally waived for the period, meaning you won't get a delinquency mark on your credit report. Interest charges typically continue racking up.

The time out could help you get back on your feet, but don't expect it to last more than a couple of months, said John Ulzheimer, the president of consumer education for Credit.com.

Forbearance on credit cards typically isn't reported to credit bureaus, although forbearance on student loans usually is, Ulzheimer said.

Another pain-free way to get some relief is negotiating a lower interest rate. Or you might simply ask that a recent hike not be enacted.

A more serious option your credit card company could offer is entering into a debt management plan, which entails working with a credit counseling service to repay your debt. This might be proposed if other adjustments won't remedy the problem.

As part of the plan, late fees are usually waived and interest rates lowered. You'll still pay the entirety of your debt, although likely in smaller amounts over a longer time.

The nonprofit credit counseling agency that administers the plan will charge a fee of around $20 to $50 a month. It may be waived if you can't afford it.

One of the drawbacks of entering a debt management plan is the likely closure of your credit card account.

Depending on the size of your debt, the repayment plan could also span several years. And it will show up on your credit report for the duration of the plan. It disappears from your credit report once you're done paying.

The risks

There are potential repercussions that come with asking for a modification, so think it through. The strategy could boomerang.

“Anytime you pick up the phone and call your issuer right now, you run the risk of them doing something adverse to your situation,” Ulzheimer said.

Flagging that you're a risky customer might result in a lower credit limit, or even the closure of your account, Ulzheimer said.

Card companies are going to hold you to the terms of your agreement if they think you can pay. This is especially true because new laws will require them to follow stricter rules on raising rates come February.

That doesn't mean you should be afraid to pick up the phone if you really do need an adjustment. After all, a clampdown on your credit card terms isn't as bad as a delinquency or bankruptcy.

The alternatives

A more serious course of action is pursuing a debt settlement, which is when you agree to pay a portion of your balance and have the remainder written off. Unlike a modification to your terms, however, a settlement has a big impact on your credit profile.

You should consider a settlement only if you truly don't think you'll be able to keep up with payments, or if you think continuing to make payments will put you in danger of bankruptcy.



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