Credit card debt

Credit card debt is another example of unsecured debt. Credit card companies spend millions of dollars trying to convince people all over the world to use credit cards. Credit cards used wisely can be a great help to manage short term cash flow shortfalls. But credit cards not used wisely can create a lot of problems since credit card companies are loan sharks of the old days. On credit card debt they will usually charge you: 1. High APR 2. Late fees 3. Late payment penalty charges 3. Report it to the credit rating agencies.

Sometimes the late fees and high APRs are too much for the consumers to handle. In such cases the only option left for the consumer is to declare bankruptcy. Credit card companies are naturally wary of consumers declaring bankruptcy. Since then they dont get paid any money owed.

Hence the credit card companies usually are willing to offer a better deal to the consumers if they feel that they have pushed the consumer to the brink of bankruptcy.

To see the credit card companies and what they offer as a back door deal you can consult back door deal

To avoid consumers from declaring bankruptcy the credit card companies other then offering a back door deal of reduced APR, removing late fees and removing the late payment charges are also trying to make it very difficult for consumers to file for bankruptcy with their lobbying effort in the congress.