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Originally Posted by Manga1
Usually you can negotiate with the banks and discharge your debt with as little as 10-25 cents on the dollar. Banks don't really want to go through the trouble of chasing you around and paying to go to court etc. More often than not they will settle a debt if approached properly. After all, some money is better than no money.
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That isn?t at all how it works nowadays. If your low income (under the garnishment threshold) after 2-3 years of chasing you around they might offer to settle for 2/3s and on real rare occasions they might take ½ of the debt owed. If you make more than the garnishment threshold, they will simply garnish your wages. In those cases there is no need for them to take less than what is owed.
And under the new system there is no reason for them to negotiate whatsoever as they will likely be able to collect in full (even the interest) and the government will pay all of the collection cost. Being a credit card issuer has to be one of the most lucrative business to be in nowadays because in effect the government is guaranteeing collection of the debt.