Credit card companies modifying more credit card debt

Credit cards
Credit cards

Are you carrying a lot of debt on credit cards? Have your interest rates skyrocketed? You may be able to negotiate a better deal according to a report in The Washington Post.

As credit card defaults soar past 10%, credit card companies are realizing something is better than nothing. Lenders are restructuring credit card accounts by lowering interest rates or minimum monthly payments for a specific period of time, waiving fees or settling the debt by accepting less than what is owed.

Most card issuers don't want to talk about the practice because they fear they'll get too many calls, but industry executives have confirmed the changes in credit card company practices. Moody's reports that the charge off rate for credit cards was 10.52% in July and is expected to reach at least 12% by the middle of next year. Not surprising to hear when they raised so many people's interest rates to 20 or 30% or more.