One hand is pushing troubled customers to seek debt counseling before they can file for bankruptcy protection. But that's not how credit-card companies see it. It's only fair that people in debt-management programs pay their fair share, they say, and they don't believe they're forcing anyone into bankruptcy. The result has been a double whammy to the credit-card industry.
Issuers lose money whenever someone seeks bankruptcy protection.
Faced with these pressures, lenders have asked Congress to change the bankruptcy laws . Most debt-counseling agencies are nonprofits that get almost all their financial support from the credit card industry. They offer an array of services, including debt-management plans. When you qualify for a debt-management plan, the counseling agency consolidates all of your debts. You make a big monthly payment to the agency, which distributes the money to your creditors.