New debt solutions coming from credit card companies

The New York Times reports that with credit card delinquencies approaching record numbers, the credit card companies have come up with a new debt solution:  Make a deal on the principle.

Up until recently, credit card companies have limited their negotiations to the elimination of late fees and some interest charges.  They would not touch the principle.  But times have changed, says the Times.

Credit card companies refuse to admit they have changed their collection practices, but the Times reports that many more debtors are being offered principle reductions as part of a deal to pay off their delinquent debt.   A common deal appears to be “pay now and we’ll cut the principle in half.”  But better deals than that are being reported.  Principle reductions down to one-third of the original amount are not uncommon, and credit card companies are often willing to extend the payments without charging further interest.

If you’re faced with credit card debt you cannot pay, your debt solution may be at hand.  You can call the credit card company yourself, or you can work with a credit counseling agency to negotiate the debt for you as part of a debt management plan.

Click Here for more information on debt management plans and the only credit counseling service we recommend.

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