As credit card holders’ struggles with payments on credit cards continue to increase the environment looks like it will only get tougher, particularly those with infractions and/or low credit scores. Due to increased losses from chargeoffs, companies are moving away from fixed rates, raising minimum payment requirements, and raising fees wherever possible stretching budgets thin for millions of cards holders. If you are stretching to make payments now, there are a few actions you can take to preserve your credit card standing, according to Ben Woolsey, director of marketing and consumer research for CreditCards.com.

A new survey by the New York-based nonprofit research and advocacy group Demos shows that before the mortgage meltdown got into its full swing and the economy went deep into recession, Americans in low and middle income brackets were using their credit cards to cover basic living expenses, medical costs, and other day to day necessities, building up their balances in the process. Plastic was used to cover basic living expenses like rent or mortgage payments, groceries and utilities by more than one-third of the households in the survey. And three out of four people who took part said they used their cards for essential spending like car repairs, home repairs and college expenses.

Interest rates with seemingly nowhere to go but up and recently passed legislation by Congress are threatening to turn fixed rate credit cards in to a dying breed. According to bankrate.com, approximately two thirds of credit cards outstanding currently carry variable rates, a number that is expected to grow quickly as card issuers switch their fixed accounts over to variables. Fixed rate cards, even for promotional purposes, now account for only one in ten of the offer letters mailed out to potential new card holders according to Mintel Comperemedia, a database and media monitoring firm from Chicago. That’s a 75% drop from the total of fixed card offerings in 2008.

Struggling consumers have more choices today than ever when it comes to debt relief options. These choices include credit counseling, debt consolidation, debt settlement, and bankruptcy. Opinions vary widely on each option but making the right decision is a matter of assessing a borrower’s specific circumstances in relation to how each method works and what the ultimate result of each would be. The following are five questions to help get the decision making process started:

JP Morgan Chase is in the process of making things a lot more difficult for a large group of their card holders. Spurred by the upcoming regulations imposed by the Credit Card Accountability, Responsibility and Disclosure Act (Credit CARD Act) which was passed by Congress and signed into law by the President in May, Chase is moving quickly to raise fees and payments as well as changing credit terms with holders to allow further increases after the provisions of the bill go into effect.

Regarding payments, Chase is raising the industry standard 2% minimum payment to 5% of the balance carried on their cards. Card holders will feel the heat of that change immediately as Chase is making the change effective in August. That heat comes in the form of minimum payments that will go up by 150%. There is no doubt that the steepness of that increase will put payments out of reach for a large group of card holders on receipt of their first monthly bill.

If you have a credit card, a checking, or a savings account you’ve probably already noticed that the attached fees, charges, and interest rates are going up. Consider the first half of the year a warm-up for the really big increases going in effect between now and the end of February 2010. Financial institutions of all sizes are reacting to Congress’ passage of The Credit Card Accountability, Responsibility, and Disclosure Act (aka The Credit CARD Act) in May and the creation of the Consumer Financial Protection Agency by raising every charge they possibly can prior to the implementation of the bill next year.

The Obama Administration has made several announcements detailing the purview of the Consumer Financial Protection Agency, a new agency which would regulate the credit card and mortgage industries. The President recently sent the guidelines, which would regulate the fees, terms, and interest rates on a variety of consumer products, to Congress stressing the urgency of its approval.

As debt settlements, bankruptcies, and the unpopularity of credit card companying continue to increase, the Obama administration reiterated its support behind legislation in Congress that would put restrictions on the imposition of higher fees and interest rates on consumers. Following on promises made during his campaign, President Obama met with top brass from the largest credit card issuers in the country to push them toward action that would reduce abusive practices.

Throughout America, people are being forced to deal with their debt problems, and many are finding that the root of their problem is poor debt management. Many Americans don’t even look at bills and collection notices when they come in, choosing rather to ignore them and throw them away. This sort of behavior is counter productive, and only leads to further debt.

Many Americans don’t understand the difference between secured and unsecured debt. In fact, few Americans even know either secured or unsecured debt exists.