Credit Card Debt Relief - Why Credit Card Companies Will Agree to Take 50% of Your Balance
Before the recession hit the economy, a 50% lump sum repayment might have, only might have, convince the credit card companies to offer 10% or 15% discount.
Of course, even the mere promise of 50% lump sum repayment would not have sufficed.
The credit card companies would have expected you to walk in with half the repayment in your hand in liquid cash.
Even then, the card companies would have insisted on being convinced why you should get a discount.
It would not be incorrect to say that discount offered by card issuers was treated in the same manner as cash discount offered by traders.
It is merely an incentive for you to repay the debts quickly.
Just as cash discount does not exceed 2% or 3% of the total amount owed, the discount offered by credit card issuers never exceeded a 5% to 10% of the total amount owed.
In such a scenario, to discover that card issuers will be prepared to waive 50% of your debt and accept the balance 50% as full and final repayment is very surprising.
Further, to discover that the card issuers will offer this deal along with an installment facility is even more surprising.
What has changed? Why are credit card companies are prepared to offer such generous discounts? a.
The lenders have realized that pushing the borrowers any further is only going to lead to more complications.
Better a settlement than a bankruptcy.
That is the logic that the credit card issuers are following.
b.
The lenders have received a stimulus package funds from the government.
If not directly, the increase in demand for goods and services has lead to increase in demand for credit card services.
The card issuers do not want to spoil the cozy right by pushing more people into bankruptcy.
c.
The card issuers have realized that dealing with honest and genuine borrowers is the right way to proceed.
What is the point of lending money to those who do not use it responsibly and end up asking for a settlement at a later debt? Lenders are prepared to offer onetime settlement to finish the process so that they can start all over again.
d.
More and more borrowers are utilizing the services of professional debt relief experts.
It is very difficult for the credit card issuer to confuse and avoid when professionals are involved in the negotiation.
Of course, even the mere promise of 50% lump sum repayment would not have sufficed.
The credit card companies would have expected you to walk in with half the repayment in your hand in liquid cash.
Even then, the card companies would have insisted on being convinced why you should get a discount.
It would not be incorrect to say that discount offered by card issuers was treated in the same manner as cash discount offered by traders.
It is merely an incentive for you to repay the debts quickly.
Just as cash discount does not exceed 2% or 3% of the total amount owed, the discount offered by credit card issuers never exceeded a 5% to 10% of the total amount owed.
In such a scenario, to discover that card issuers will be prepared to waive 50% of your debt and accept the balance 50% as full and final repayment is very surprising.
Further, to discover that the card issuers will offer this deal along with an installment facility is even more surprising.
What has changed? Why are credit card companies are prepared to offer such generous discounts? a.
The lenders have realized that pushing the borrowers any further is only going to lead to more complications.
Better a settlement than a bankruptcy.
That is the logic that the credit card issuers are following.
b.
The lenders have received a stimulus package funds from the government.
If not directly, the increase in demand for goods and services has lead to increase in demand for credit card services.
The card issuers do not want to spoil the cozy right by pushing more people into bankruptcy.
c.
The card issuers have realized that dealing with honest and genuine borrowers is the right way to proceed.
What is the point of lending money to those who do not use it responsibly and end up asking for a settlement at a later debt? Lenders are prepared to offer onetime settlement to finish the process so that they can start all over again.
d.
More and more borrowers are utilizing the services of professional debt relief experts.
It is very difficult for the credit card issuer to confuse and avoid when professionals are involved in the negotiation.
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