Do not be under the misconception that credit card issuers are negotiating with borrowers out of goodwill and generosity. Rather, it is the charity performed forcefully on the instructions of the Federal government. Further, there is a lot of self preservation tactics involved.
The recession that hit the American economy has brought back memories of the Great Depression. Why is that so? This is one recession where the manufacturing industry has taken a huge hit. Further, the automobile industry has been hit very hard and a large number of small manufacturers and businesses have gone out of its existence.
When General Motors itself could not escape the harmful effects of the recession, there is no point in even contemplating how tough it must be for small businesses. The slowdown in the small business sector has hit credit card issuers very hard. This is because credit cards were the primary source of capital for small businesses. These enterprises did not have enough assets in their hand to secure affordable loans from banks and other financial institutions.
Large number of bankruptcies in the small business sector mean that card issuers were struggling to find new clients and customers. People became more conservative and they were not keen on borrowing money without it was unavoidable. Further, the intimidating tactic utilized by the card issuer also worked against them. The end result was that there was a huge slow down and there was a serious fear that America would give up the habit of incurring debt altogether.
There was fear in the US economy that demand for cards would go down and stay down. All this meant that credit card issuers were forced to go in for an image overhaul. The best and easiest way to do so was by going in for a 50% to 70% settlement. There have been innumerable instances where settlement has been offered directly to the card holders.
Further, as word spread on the net, large number of service providers offered agency services and helped negotiate fantastic waivers on behalf of credit card holders. From reasons ranging from government pressure to common sense, there are many reasons why credit card companies will now negotiate and offer a discount.
The question is whether you are up to the task? If you secure a 50% waiver, you need to repay the balance amount over a period of 3 years. Once this is done, you can successfully claim to have bought on your debt down to zero.