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
Walmart worker confronts the return scammer, sparking a viral debate on ethical consumer behavior.
10 hours ago
She was only offered $6,600 as a “goodwill gesture” for being the winner. 
1 day ago
The man from New Jersey bagged the reward when he was in the studio just as a member of the audience.
1 day ago
Viewers were left scrambling for an explanation until the glitch was fixed during a re-run later that year.
1 day ago
The person who originally listed the property later explained the logic behind the design.
1 day ago
Later, she finally found a way to get rid of the Tahoe after three years of paying $1,400 a month.
2 days ago
A study highlighted the alarming number of bacteria found on a large package from Amazon.
2 days ago
So far the recall hasn't been directly linked to the salmonella outbreak caused by eggs from another brand.
2 days ago
The employer was overwhelmed after learning about the struggles of his employees.
2 days ago
The video gained so much popularity that some users even advised Amazon that it could be their next commercial.
3 days ago
The transit worker and her husband still haven't decided what they intend to do with the winnings.
3 days ago
Vanna White herself feels that Maggie Sajak has her father's charm and can be a fitting replacement for her.
3 days ago
Markle had even shared that she wasn't fond of her stint as the "Briefcase Girl" on the show.
4 days ago
The photographer also charged extra to edit the pictures although he too had missed the flaw.
5 days ago
The woman revealed that her aunt received the artwork as a gift to thank her for a pillow.
5 days ago
At the peak of his career, Jones reportedly made over $7 million in one season of "Two and a Half Men"
7 days ago
While it's not clear if Jay-Z was describing a hypothetical situation or a real one, the clip gained enough traction.
7 days ago
The content creator also started a GoFundMe page for the cashier to raise more money to reward her.
Nov 28, 2024
The celebrity wanted to help women in the criminal justice system who face unique challenges.
Nov 27, 2024
The rapper says people can find all the wisdom in his music.
Nov 27, 2024