If you said "yes", fair enough. I can understand your view that settling with credit card companies can be unethical. However, it isn't unethical to settle your debt if you cannot afford to pay it, and the debt collectors agree to accept less than the amount owed, is it? After all, people's finances change all the time. There's no guarantee what the future may bring.

Due to the financial crisis, many debt collectors are settling for lower amounts than usual. Prior to the recession, the average settlement amount was roughly 50%. Now, the average settlement has been reduced to about 42%. This means that the average settlement repayment is only about 42 cents on the dollar.

By settling with credit card companies, you are simply paying back what you can afford. If you suddenly stopped paying your debt for no valid reason, that would be considered unethical.

A creditor extending $30,000 of credit to someone and encouraging her to make minimum payments so that the creditors can collect about $321,000 in principle, interest, fees and penalties after repayment is made in full!? creditcards.com will show you how long it takes to pay-off a credit card debt.

How Greedy Can They Get?

Is this ethical? Changing your due date without notifying you in order to charge a late fee? It happens all the time. If it's stated in your contract, they can do it. Making your payments about 10 days in advance is the only viable solution (unless you want to call customer service every other week!)

Is this ethical? Creditors, for no apparent reason, raise your interest rates to 29.99%, even if you have good credit? Imagine that. You never miss a payment and suddenly you receive a notice that informs you that your interest rate has been increased. This is happening a lot lately since President Obama signed a bill that will prohibit creditors from raising rates to ridiculous amounts.

Is this ethical? Changing your billing cycle so that your payment becomes due on a Sunday, so they can assess a late fee because they know the banks won't wire the funds on that day!

These a just a few of the many "tricks" the creditors have up their sleeve. It's unfortunate that the credit card companies are taking advantage of consumers.

Do you still feel that it's unethical to settle with your creditors?

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