Credit card companies have begun to use an unusual tactic with their formerly best customers.
Credit card borrowers who charges high amounts and then only paid the minimum payment every month used to be the favored customers because they always brought in that interest profits.
But recently those same borrowers are actually being offered cash incentives to pay down their debts. There have also been similar incentives such as interest rate reductions.
The credit card companies began the experiment of offering incentives last year when the delinquencies and defaults began to increase due to the ongoing recession. It is theoretically a way to reduce their risk of future losses.
One caveat to consider is that these offers have only been made on a invitation only basis to customers specifically identified by the lender. In other words, if this sounds good to you and you call and try to negotiate a deal for yourself you may be denied.
You are probably much better off by developing a plan for payoff that works for you and sticking to it.
See ?Bribed? on MSN money.
