Only diamond can cut diamond.
One has to think like a thief to catch a thief.
One must fight fire with fire.
In the same way, one must combat rising credit card debts with debt settlement.
In my opinion, settlement of debt which involves securing a waiver from the credit card issuer for about 50 % - 60 % of the original amount owed is the best way to tackle credit card debt.
Once you exceed your account limit or once you skip even a single repayment, the interest rate increases drastically and you find your outstanding amount rapidly rising beyond control.
What a debt settlement does is that it takes the sting out of the rising card debt.
Not only is your penal interest payable, administrative charges and taxes waived, you also get a reduction on the original amount owed.
Lenders are forced to offer such settlement because of the recession and a large number of bankruptcies that it has led to.
For very long time, people were very hesitant to seek a waiver on the original amount owed.
Of course, card issuers did not help either.
They treated each and every request for waiver for even penal interest with contempt.
It was only when recession hit and people simply gave up on their credit card debts and start talking about bankruptcy did card issuers wake up and smell the coffee.
It was the credit card issuers who first encouraged lenders to seek waivers on the principal amount owed.
Earlier, each and every waiver was accompanied by a demand for instant lump sump repayment of the balance amount.
Today, you can enjoy a fantastic installment facility that helps you repay the remaining amount over period of one to two years.
You simply have to deposit the amount in the escrow account and watch the balance grow until the balance is sufficiently high to repay the credit card debt in full.
A lot is owed to the stimulus package as well which has helped credit card issuers to absorb their losses better.
This has ultimately helped the ordinary man on the street.