Realistically, when the big banks start failing and don't worry they WILL fail, most peoples credit card debt is either probably gonna be reduced or done away with anyway.

Look at Lehman Brothers (the big bank that collapsed in 2008 that caused the great recession). A lot of "normal people" simply had their debts wiped, because there was no feasible way of collecting on those debts and it was prioritized to go after corporate debts and assets in order to pay back all of Lehman's debtors.

As far as I can tell, this is the most likely scenario again, just turned up to 11.