Credit card companies: Let's make a deal!

To all the debt-strapped consumers who have been asking, "Where's my bailout?" it seems the credit card companies are responding. If you ask.

If you are carrying a debt on your card and have been unable to pay your credit card bills, some credit card companies are willing to forgive balances if a chunk of it can be paid off at once, The New York Times reports.

Credit card companies are giving employees who deal with consumers on the phone the power to cut deals on paying back a portion of card debts to close the loans. In many cases, they are not checking with supervisors to detemine how much is a fair number for a debtor to pay back to call it even. Most banks were not willing to discuss if and when they are making deals with delinquent account holders, but an American Bankers Association spokesperson told the Times that these kinds of settlements are becoming more common. The worsening recession, unemployment, and housing foreclosure crisis have combined to dry up assets that credit card companies may have sued for in the past to close debts. Now, if they can at least get some of the money they otherwise would have to write off their books, they are making deals.

The one comment offered in the article by some of the bank representatives is this: Every customer's situation is unique. So if you think yours is uniquely dire and you find yourself unable to pay your credit card balances because of the way recent events have conspired to leave you jobless and strapped, it may be worth a call to your credit card company.
[Source: NYT]