In an average credit card bill - more then half of the bill is interest - more then half. That's the part that is negotiable - the absurd interest that has accumulated on the principal amounts. That can be more then half the debt and the interest continues to compound and grow faster/bigger. That's the profits debt collectors work on when they buy debt from credit card companies. Now, say you are successfull in working a deal with that debt collection company. You both agree to paying 50¢ on the dollar owed (the small principal amount and remaining interest). You think, finely, got my debt payed up. Well, no . ..  that debt collection company (most debt collection companies are owned by credit card companies) sells the remaining debt to another debt collection company to start harrassing you for the remainer. You claim it was paid and settled - do you have proof the debt was discharged? Most likely not, cause the consumer doesn't know to ask for discharge papers and trust the collection company that it is discharged on their word over the phone. The interest is still accomulating - so, no real hurry to start collecting for the next collection company - just need to ensure we keep track/location of the consumer for future collection. Now enough time has passed the bill has doubled - lets start collecting. . . .  The big creditcard banks have this all mapped out - thats why they got credit card reform a few yrs back - so they could collect more from the debter - forever.

As someone posted above, it should be a loss for the Creditcard company (for being dumb enough to continue extending credit and the consumer - but rearly is, mostly the consumer. The credit card companies / debt collection companies continue to profit on absured interest compounding schemers.  The law should be changed to something like, If a consumer is late paying the bill - the card should freeze - no more use, no more interest accumlated untill payed for. It would keep the CC companies from praying on the poor/uninformed.