Credit Card Reality
With high ride in market, debt has increased in leaps and bounds which had real acceleration from credit card companies and now the situation is completely different. They realize that the hard pressed Americans will not be able to pay their bills as the economy deteriorates.
The scenario is such that lenders and collectors are pushing themselves an extra yard to collect what ever they can before situations runs out of their hand. They are even forgoing parts of their money and debts due from the clients end. They are even stretching their time to extract what ever remains viable for them to recover from the debt ridden clients.
It is visible that big settlements have dried up. Banks and credit card companies are trying to gather their liquidity as much as they can. Data shows that Bank of America has constantly been waiving of debts, lowering interest rates, reducing loan balances, and this may provide much needed oxygen to the bank clients. Like wise several others like American Express, Chase Card are taking care of their clients who are on the verge of falling behind their bills and dues. It has been seen that several people are benefited with 20 to 70 percent waive off from their credit card bills. Thousands and billions of dollars are forgone with this ease out process. In past it has been seen that people are dishing out money from home equity, fetching money from retirement benefit funds / savings or by taking loans, going for help from known persons or from debt consolidation consultancy. While mortgage loans which are often big and complex, credit card issues are handled on individual basis. Also we see that credit score of the clients shooting down sharply.
Thanks
Pamela
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