Drowning in Credit Card Debt? Here Are Your Options

When you have credit card debt, just the words “credit forgiveness” can inspire hope of relief.  But will credit card companies forgive debt? Yes — but in most cases, you will still have to pay at least a portion of your debt. In reality, debt forgiveness is not as simple or easy as it sounds, and it has important consequences both positive and negative.

What Is Credit Card Debt Forgiveness?

Credit card debt forgiveness is when a credit card issuer agrees to forgive all or part of a customer’s outstanding balance. While that may sound great, it’s very unusual that a credit card issuer will forgive your entire balance. And even though a portion of your debt will be forgiven, there can still be consequences to your credit history, credit score and tax liability.

How Credit Card Debt Forgiveness Works

The first step toward securing credit card debt forgiveness is to check your credit card statement balance and find out how much you currently owe. Then, you or someone representing you can contact the credit credit card issuer.

How Credit Card Debt Forgiveness May Affect Your Credit

Credit card debt forgiveness can have serious consequences for your credit history and credit score. When a credit card issuer writes off your debt, it will add that information to your credit history, which is considered to be negative.

When Companies Offer Credit Card Forgiveness

One of the ways to get credit card debt forgiven is to go through a professional debt settlement company. There are debt settlement companies that exist to help consumers negotiate with credit card issuers and other creditors.

Other Options for Debt Relief

While credit card debt forgiveness can be an option for those with large amounts of debt, there are still other choices to consider.

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