With just about everyone admitting that we are in a world-wide recession and some going so far as to admit it may actually turn into a full-blown depression, lenders have adopted a “get it while you can” approach to debt collections.

No where is this new approach more visible than with credit card debt where lenders are settling for dimes on the dollar and in some instances pennies on the dollar.

Many lenders have come to the conclusion that recouping something is better than recouping nothing, as more and more debtors are confronted with financial ruin.

Those confronted with credit card debt which they can not pay might wish to consider negotiating a settlement on their debt and on terms they may never see again in their lifetimes.


Lenders are hurting for money and are generally in a “collections frenzy”, trying to beat other creditors to what ever funds debtors have available to pay down debt.

Lenders appear willing to not only accept settlements for dimes on the dollar but to work with debtors, allowing them to pay off the settlement amount over the course of several months rather than in a lump-sum settlement. Those seeking to cut a deal for a settlement for pennies on the dollar should expect to be required to pay the full settlement amount in lump-sum.

So what to do if one has several credit card balances they can not pay?

Simple, try cutting settlement deals with all of them and in the process be sure to put them into competition for what ever amount you can pay.

Early in the negotiations be sure to let them know what your other creditors are offering in the way of a settlement and let them drive each other’s settlement offers down in a bidding war for your payments.

If you get lucky you will be able to cut a deal with all or at least most of them, some for pennies on the dollar and some for dimes on the dollar with time payment arrangements.

Lenders are scared and debt collectors have been forced to abandon their “get tough approach” of bygone years. Both are willing to settle for far less than they would have even one year ago in order for them to get it while they can.

So why shouldn’t you benefit by adopting a “get it while you can” approach to dealing with debt? Odds are that you will never see a better time to negotiate a settlement of your debt on terms that were unheard of even one year ago.