Credit Card Debt Relief

Credit card debt relief starts with you. As we've stated, the news is full of headlines from people who have taken control of their personal finances and effected a positive change by negotiating a partial payment on their loans. As just one example, take a look at this article from the New York Times on June 16th, 2009.

An example of how quickly the card companies are shifting their approach is in the behavior of HSBC, a major issuer, toward McClelland. He was paying fitfully on his card, which was canceled for delinquency. In April, HSBC offered him full settlement at 20 percent off. He declined. A few weeks later, it agreed to let him pay half. Traditionally, the creditors could play tough with any accounts that became delinquent because the cardholders had assets. “Having this over and done with was appealing,” he said. He raised the agreed-upon $2,743 and sent it off electronically last week. He has spared himself the prospect of years of collection calls.

So, credit card debt relief really can be that easy. Amazing, isn't it? When you think about it from the bank's perspective however, it begins to make sense. The bank would rather have you pay off half your debt than none of it. That's a no-brainer. Now, consider the rise of these independent, private debt collection agencies. They make money by charging both banks and private individuals. With all the credit card debt that has accumulated, there are more of these predators than ever before, and they are making money hand over fist. Money that neither the bank nor you should have to pay them. However, by introducing a third player into the relationship, that's exactly what happens. So, it makes sense to eliminate this middle man and keep the loan payments between the owner and the payer.