The Washington Post reports that credit card lenders are now agreeing to lower outstanding balances, interest rates or even both in some cases.

Chase has admitted to modifications for 600,000 customers. Bank of America, meanwhile, is doing modifications for 1.2 million card holder accounts, according to the article.

If you are in a pickle, call your credit card company and try to obtain a modification. It is happening for people out there. Be organized and be realistic about what you can afford to pay when you talk to them. And don't be afraid to play hardball by ignoring their first offer and holding out for a better deal.

Know that not all credit card lenders are not doing modifications in the same manner. Some require you to be delinquent. Others will only work with you if you're current on your account.

Why are the banks that control credit cards even doing these modifications in the first place? Well, they're scared of people going bankrupt, in which case they would get nothing. The charge-off rate in July was 10.5 percent for credit cards. Those are big money losses for the banks.

Keep in mind the tax implications of a modification. You won't incur any tax penalty if you just get your interest rate reduced. But if the bank reduces the outstanding balance, you will get a tax bill for the money that's written off.

Clark knows there are people listening to him who are incensed by what he's saying. But these kinds of modifications have always been done in commercial lending under the name of "workouts." They're not unprecedented, they're not evil and they're not immoral. This is how business operates.