Credit card providers 'willing to negotiate debts'

Those looking to get to grips with their credit card debts may be interested to hear that a number of providers are prepared to negotiate on the overall amount of money that is owed.

An article by The Sheet points out that with personal credit growth reaching its lowest level for over 15 years - in addition to Aussie credit card holders using the money received from the government's economic stimulus package to repay their debts - card issuers are increasingly looking to do deals with their customers in a bid to encourage people to make repayments.

"Some of the second-tier card issuers in particular are caving in very readily to consumers, offering them around $3,000 to pay off $5,000 debts," states Donna Elliot, a debt advisor and agreement administrator based in Melbourne, claims.

And while a number of debt counsellors claim that Citibank in particular has been willing to negotiate with customers, many major banks - including ANZ and Westpac - are taking a more stringent approach to this.

Speaking earlier this month, financial adviser Adrian Raftery told ninemsn that Aussies should look to renegotiate their debts with their banks, although he suggests that they should adopt a polite, non-threatening manner before they start to haggle.