How do credit card companies decide who they will negotiate with?
When it comes to your finances most lenders know exactly what your financial situation is. They know about your past payment history and any other unsecured loans you might have. When you go to a lender to negotiate your credit card debts they will look at your big picture. If you have been making regular payments on other unsecured loans except for one they will assume that you can afford to make the minimum payment so they will be less likely to work out a deal with you. If they see you don’t have the ability to make the monthly payments for all your unsecured loans then they will be far more likely to settle. People who have many assets such as a home/cars will have a more difficult time convincing the lenders to negotiate, as their assets are of value.
