ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Seeking Relief From Credit Card Debt? Here's the Eligibility Criteria for it

With over eight out of 10 adults carrying at least one credit card, it's no surprise that the quest for relief from mounting debt is a prevalent concern
PUBLISHED FEB 10, 2024
Image Source: Pexels | Photo by Pixabay
Image Source: Pexels | Photo by Pixabay

In addition to the rising cost of living, credit card debt has become an all too familiar burden for many Americans trying to maintain a certain standard of living. With more than eight out of 10 adults carrying at least one credit card, it's not surprising that the quest for relief from mounting debt is a prevalent concern. If you find yourself struggling with credit card debt, the prospect of credit card debt forgiveness might offer a glimmer of hope. Check out the requirements for eligibility and the avenues available for those seeking financial reprieve.

Credit and debit cards | Getty Images | Photo by Matt Cardy
Credit and debit cards | Getty Images | Photo by Matt Cardy

While there isn't a government-sponsored program specifically designed for credit card debt relief, there are alternative routes individuals can explore. Credit card debt forgiveness, though not guaranteed, is a possibility through negotiations with creditors. This process typically involves settling for a percentage of the total balance owed. Almost anyone facing challenges in meeting their credit card payments may qualify for debt forgiveness.

Representative Image of Ileana Garcia looking in her wallet for credit cards | Getty Images | Photo by Joe Raedle
Representative Image of Ileana Garcia looking in her wallet for credit cards | Getty Images | Photo by Joe Raedle

One avenue for credit card debt forgiveness is through debt settlement programs. These services involve a thorough analysis of your financial situation by a debt relief expert. As you make payments to a specialized savings account, the debt settlement company negotiates with creditors to reduce your principal balance.

But a drawback of this is that payments to creditors may be delayed during the savings period, impacting your credit score. Moreover, there's no guarantee that your credit card company will accept the settlement, and if they do, you may face tax implications on the forgiven debt.

When debt settlement doesn't provide sufficient relief, bankruptcy becomes an option of last resort. While bankruptcy may negatively affect your credit score in the short term, it can lead to the complete forgiveness of your credit card debt.

Image Source: Photo by Karolina Grabowska | Pexels
Image Source: Photo by Karolina Grabowska | Pexels

While debt settlement and bankruptcy are potential solutions, they come with significant consequences for your credit. Consider these alternatives before making a decision.

Explore the possibility of a personal loan to consolidate credit card debts at a lower interest rate. This option often comes with a fixed payment schedule, providing a clear path to payoff.

If you own a home, tapping into its equity can be a cost-effective method to consolidate credit card debts at a lower interest rate.

Debt relief experts can negotiate better terms with creditors and create payment plans tailored to expedite debt repayment.

Many credit card companies offer financial hardship programs that can provide relief through lower interest rates and fixed payment terms. Simply reaching out to your lenders and expressing your need for assistance can sometimes yield positive results.

Credit card debt may feel insurmountable, but there are avenues for relief. If traditional debt consolidation methods fall short, exploring debt settlement programs or bankruptcy could be viable options. At the same time, it's essential to weigh the potential impact on your credit score and financial future before making a decision. Also, seek professional advice to navigate the complexities of credit card debt forgiveness and find the most suitable path to financial freedom.

MORE ON MARKET REALIST
The round was filled with hilarious answers that cracked the host up often.
7 hours ago
The contestant was super excited to have made it to the Bonus Round and he won big.
9 hours ago
Corey Harrison was interested for a bit but that price immediately made him say no.
10 hours ago
Drew Carey tried making a bet with the contestant but she was not having it.
1 day ago
Steve Harvey was left stunned by the answer and had to question the entire family.
1 day ago
Steve Harey forced the contestants hiding to come out and address the situation.
2 days ago
Rick Harrison were creeped out by the handcuffs but still wanted to buy them.
2 days ago
Cuban was interested in the tech side of the company but was annoyed when his doubts got no answers.
2 days ago
She had already won more than $21,000 and a trip to Portugal before heading to the round.
3 days ago
The contestant even apologized to Steve Harvey after her answer was called out.
3 days ago
The host urged fans not to laugh at the answer, as it might come back to bite them in the future.
3 days ago
The seller lacked any solid proof and as a result, nobody on the show wanted to offer him a deal.
4 days ago
The contestant wished that bars gave free alcohol to those already drunk out of their minds.
4 days ago
It would have been easy for Amy Schneider to respond harshly to the accusations, but she remained cool and collected.
4 days ago
The host was left shocked after hearing the answer as he mouthed "wow" a couple of times.
4 days ago
The contestant went on to win $20,000 for her family despite the awkward moment.
5 days ago
The entrepreneurs might have hoped that a third of their company would attract a shark, but it didn't.
5 days ago
She was just happy to be on the show and was not disappointed about leaving empty-handed.
5 days ago
Things got heated as all of the sharks took shots at each other for a chance to cut a deal.
5 days ago
The entrepreneur was selling a DVD set about men's grooming, which was priced at a whopping $297.
6 days ago