Often the person in default is not willing to make any more payments, they have essentially given up on paying off the debt or they may feel the loan is unfair.

Often the person in default is not willing to make any more payments, they have essentially given up on paying off the debt or they may feel the loan is unfair. The larger reason is that collecting debts becomes a lot harder if consumers know that the lender will just reduce what they owe if they hold out.