Rick,

Sounds like you are seeing the problem early.. before it is hopeless.. and you are facing reality, which is more than many people do. First thing to do is to list your sources and uses of funds on a monthly basis. This will give you an idea of exactly what your monthly shortfall is and seeing the list of expenses might give you some ideas where you might be able to trim some expenses slightly.. every little bit helps. Assuming all expenses are down to absolute bare minumums, meaning no cell phone, no meals out, no cable, cheapest dialup in your area rather than DSL or cable modem, and you have no significant assets to liquidate for an infusion of capital, examine your existing skills and experience to see where they may be marketable.. could you possibly do some video editing on the side to make a little more money? Is there a security guard company in your area? They generally prefer more mature dependable individuals and often need part timers to fill in posts. The work is not high paid, but reasonable for what is required of the worker. Next is to examine your living situation. I assume you are a single guy living alone.. Rent or mortgage payment is the biggest expense that most of us have. Can you either take in a roommate or give up your place and rent a room from someone else? This means giving up privacy but can have a significant impact on a major budget item.

They say it is unamerican to live within your means.. but unlike governments we can't continue to run deficits.. The government appreciates you doing your civic duty and stimulating the ecomony, but it is not good for your own personal economy.

Many folks live by what is called the "vacuum theory of finance" .. If you want something, buy it.. the need to make that payment will somehow suck in the available funds. Not a good long term plan.

On the credit card issue, since they don't want to work with you maybe you need to stop doing business with them. No more purchases on that credit card.. they don't need to make any more transaction fees. Consider flipping the balance to a lower interest rate card and closing that account out. After moving the expense over to a new account continue to pay at least the same monthly amount to them.. that way at least you are putting a couple of more dollars towards the principle. And of course, no more new charges on that card.

Hope some of this helps.
Chuck