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
Some entrepreneurs need a little push and there's no one like a mother to do that.
4 hours ago
The player effortlessly swept the game and Carey was impressed but couldn't respond to the offer.
6 hours ago
Richard Benjamin Harrison was very impressed with what the guest had brought to the show, but remained calm.
8 hours ago
Jennings is a legend of the game himself and he has a lot of respect for other successful players.
9 hours ago
Harrison was ready to make 'the biggest buy in Pawn Stars history' for the item.
10 hours ago
This wasn't the first time that fans were upset about contestants not recognizing a well-known personality.
1 day ago
The watch was sold four years after it came to the show for a massive amount of money.
1 day ago
Many fans also mentioned how they were themselves unable to solve it.
1 day ago
Things could have ended up quite nasty had he connected his boot with the host's face.
1 day ago
One of the things that made the record so valuable was the signature of a late, great drummer.
2 days ago
No one expects to see someone intentionally drop their phone in the toilet, but that's what we got.
2 days ago
The experts were certainly intrigued as they had probably never appraised a food item before.
2 days ago
He loved the item from the moment it arrived in the store, and wasn't going to let it go that easy.
2 days ago
The guest told his mom that they were going to spend the weekend in Acapulco after the big appraisal.
2 days ago
After making his ring debut in 1984, James Harris was nicknamed 'The Ugandan Giant.'
3 days ago
It's not always the successful ones that get all the attention, some contestants become infamous too.
3 days ago
The veteran host is kind-hearted but he can have some brutal opinions at times.
4 days ago
Not everything that comes on the show is what the owner might advertise it to be.
4 days ago
She wasn't afraid to alter her physical appearance to get a deal from one of the sharks.
5 days ago
It was perhaps one of the more enjoyable pitches as every shark seemed to have a good time.
5 days ago