Credit card debt
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Credit card debt is an example of unsecured debt. It results when a customer of a credit card company does not pay back the company. It is the interest on this debt that enables the companies to make the profits. The results of not paying this debt on time are that the company will charge a late payment penalty and report the late payment to credit rating agencies.
Bankruptcy Concerns
Sometimes the late fees and high annual percentage rates (APRs) are too much for consumers to handle. In such cases the only couple of options left for the consumer are to use "Skip a Payment" companies such as NextMonthOnline.com or declare bankruptcy. Credit card companies are naturally wary of consumers declaring bankruptcy, as doing so forces forgiveness of debt, thus losing any potential income from the debtor.
Hence the credit card companies usually are willing to offer another deal to the consumers they feel have been pushed to the brink of bankruptcy [1. This deal consists of reduced APRs, removal of past late fees and penalty charges, and reaging the accounts so that the credit agencies see them as late accounts.
Political Activities
The companies also have launched political attempts to make it very difficult for American consumers to file for bankruptcy with their lobbying efforts at the federal level [2.