Released: July 31, 2009

Negotiating with creditors may have drawbacks

Source: Kayce T. Ataiyero, Chicago Tribune (Free Registration)

It’s no secret that many consumers are struggling with credit card debt these days due to the economic downturn. But what you may not know is that an increasing number of folks are cutting deals with their creditors, in some cases for pennies on the dollar.

For those drowning in credit card debt and looking for a way out, the card issuers themselves may offer just the life preserver needed.

“Creditors are negotiating like they never have before, even though they don’t like to admit it,” said Gerri Detweiler, credit adviser for Credit.com. “Even companies that just a few years ago would consider [negotiating] until the consumer fell behind are not waiting for it to go into collections to reach out.”

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