I was reading in the paper today about how many credit card companies are settling with some borrowers with an amount far lower than what they actually owed. In some cases, they are settling for 50% of the debt! Which means that a $10,000 all of a sudden becomes a $5,000 debt! Now before you get very excited, there is more to it.
They may not be as secure as you think they are. When was the last time the cashier asked you for your ID? I always write on the back of the card (instead of my signature) “Ask for ID” in bold, black letters. I’m really not sure how much it really helps, but at least [...]
From MSNBC.com (http://www.msnbc.msn.com/id/31156371/)
NEW YORK – Credit card holders who in ordinary years might have used their tax refunds to pay down their balances apparently spent the money elsewhere as the recession deepened in the first quarter.
That’s one of the conclusions that may be drawn from data showing the delinquency rate for bank-issued credit cards rose [...]