PITTSBURGH -- While most credit card users consider the practice of "charging and forgetting" a dangerous methodology, it's the very type of behavior some companies appear to be rewarding.
"So they want their money now -- just like mortgages that are being renegotiated and stretched out -- they're willing to take a percentage on the dollar, so this is a time to make a deal," said Carnegie Mellon University economist Robert Strauss.
Both Bank of America and American Express have reportedly acknowledged that they're willing to lower debt -- maybe even cut it in half -- for card users late on payments and have had debt for a while.
The settlements can be negotiated by card holders over the phone.
"They're going to want that money right away, up front. They're not going to tell you, 'We'll accept half of what you owe and, oh, we'll put you on payment plan to do that,'" said Kristen Garrett of Advantage Credit Counseling.
For credit card companies, the apparent shift in policy comes as the percentage of cardholders making late payments has hit an all-time high as unemployment nears double digit.
"They gave people who didn't have the ability to pay back $20,000 in credit -- now they're willing to take something on it because they themselves have problems," said Strauss.
But just because a debt is forgiven doesn't mean it will disappear.
"You should be aware that your credit report is going to reflect that you have paid less than the full balance, and that's going to remain on there for seven years," said Garrett.
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