The shocking fact is that latest statistics show that 95 percent of people who have declared themselves insolvent are due to credit card debt bankruptcy.
The figures are stunning and just go to show how far into the corner people have been pushed by those who sell plastic and charge stunning interest rates and try to gouge the customer for all they are worth by adding on fees and charges which are forever a mystery.
But now that these firms have discovered people going in for insolvency will never be able to pay them back a single cent, the friendly people at these companies have now decided it is better to get something back than absolutely nothing at all.
This is why they are willing to lend a patient ear when it comes to a credit card debt settlement as they know they can recoup at least some of the money they feel are owed, even if the exorbitant interest rate is shaved off substantially.
The federal government also appears to have been shocked by the numbers filing for credit card debt bankruptcy and have since encouraged financial institutions to take consumers into account and help them erase at least a portion of the money they happen to owe.
The purveyors of plastic have no one else to blame other than themselves for driving people to credit card debt bankruptcy and it is not really out of any sympathy on their part that they are willing to hear consumers out but hard business realities.
Consumers declaring insolvency means no money is heading their way so they may as well put up a smiling face and hear them out.
It really is no big deal whether they just earn some of the interest along with the principal.
They will have at least managed to squeeze something out of the customer.
The customer also stands to gain because by making reduced payments which are a result of negotiations, he will have managed to avoid bankruptcy, even if just barely.