Tuesday, June 24, 2025
News Wave
No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
News Wave
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology
No Result
View All Result
News Wave
No Result
View All Result
Home World USA

Do credit card companies forgive high balances?

2 April 2024
in USA
0 0
Do credit card companies forgive high balances?
Share on FacebookShare on Twitter



gettyimages-2007595091.jpg

Credit card companies aren’t likely to forgive the full amout of your debt, but there are ways to tackle what you owe.
Srdjan Pavlovic/Getty Images

It can be easy to build up credit card debt over time. Spending a few dollars here or there can lead to high credit card balances if you aren’t careful, especially when you factor in the interest charges.

And, if you have a significant amount of credit card debt, you may be feeling overwhelmed right now. After all, the high interest rate environment isn’t conducive to borrowing and stubborn inflation is likely impacting your budget.

You may have heard, though, that credit card companies may forgive your credit card debt. But are they willing to forgive high balances? And if so, will they forgive the full balance of what you owe?

Find out how a debt relief service can help you get rid of credit card debt now.

Do credit card companies forgive high balances?

The short answer is yes, credit card companies may forgive high credit card balances, but the only way to get all of your credit card debt forgiven is typically to file for bankruptcy. And, doing so can come with consequences, like temporary damage to your credit score and difficulty borrowing money.

But bankruptcy isn’t the only way to get rid of credit card debt. There are other debt relief options that may be worth considering.

Learn more about your options for debt relief now.

Other debt relief options to consider

The other debt relief options to consider include:

Debt settlement programs

Debt settlement programs focus on negotiating with credit card companies to settle your debt for less than you owe, even if you have high balances. If negotiations are successful, the difference between the settlement amount and your total credit card balance is forgiven.

When you work with a specialist at a debt settlement company, you’ll start with a conversation about your finances. The specialist will use that information to create a payment plan that is affordable and geared toward getting you out of debt faster.

You’ll then make monthly payments to the debt settlement company instead of your lenders. Those payments are held in a special purpose savings account, and when enough money has been saved, they’ll start negotiations with your lenders. If those negotiations are successful, you’ll settle your credit card debt for less than you owe.

It’s important to note, though, that these programs can have a negative impact on your credit score. You may also be required to pay income taxes on the amount forgiven by the lenders.

Debt consolidation programs

Debt consolidation programs work to create an affordable payment plan to get you out of debt as quickly as possible, which is done by negotiating better interest rates and terms with your lenders on your behalf. Following successful negotiations with the credit card companies, you’ll make your monthly credit card payments to the debt consolidation company, which will pay the card companies on your behalf.

Your credit card balances aren’t forgiven as part of a debt consolidation program, but you could end up with a more affordable monthly payment and significant interest savings due to the lower interest rates and terms negotiated for you. And, because you aren’t missing your monthly payments and no debt is forgiven as part of these services, debt consolidation programs may have less of an impact on your credit score.

Debt consolidation loans

Another option to consider is using a debt consolidation loan to pay off your high interest credit card balances. Debt consolidation loans are a type of loan that is used to pay off your card balances, and these loans typically have lower interest rates than credit cards, which can result in significant savings on interest.

But debt consolidation loans don’t just offer interest savings. They also simplify your debt payments by rolling all of your card debts into one loan with one payment each month. And, having one payment can be much easier to juggle compared to paying multiple lenders.

This option may not be available to everyone, though. The lending requirements tend to be higher, so you’ll typically need a good credit score and debt-to-income (DTI) ratio to qualify for the best interest rates, and you could be denied altogether if your score is too low or there are other issues with your borrowing profile. And, if the total amount you owe is high, you may have difficulty borrowing enough to consolidate all of your credit card debt into one loan.

The bottom line

The only way credit card companies are likely to forgive the full amount of your balances is if you file bankruptcy. However, there are other ways to get out of debt in a reasonable amount of time. For example, you may be able to have a portion of your credit card balances forgiven with a debt settlement program. Or, a debt consolidation programs could offer you a way out of debt with minimal damage to your credit. And debt consolidation loans may save you money on interest. But regardless of which route you take, it can help to start now. The longer you wait, the more your credit card debt will likely cost you.

Joshua Rodriguez

joshua-rodriguez.png

Joshua Rodriguez is a personal finance and investing writer with a passion for his craft. When he’s not working, he enjoys time with his wife, two kids, two dogs and two ducks.



Source link

Loading spinner
Tags: balancescardcompaniesCreditforgiveHigh
Previous Post

Grim, grinding, costly – the supply chain strains again

Next Post

Inflation’s impact on financial markets

Related Posts

Court orders Trump admin to facilitate another deported man’s return from El Salvador
USA

Court orders Trump admin to facilitate another deported man’s return from El Salvador

by My News Wave
24 June 2025
0

A federal appeals court in New York mandated the Trump administration to expedite the return of Jordin Alexander Melgar-Salmeron, who was wrongly deported to El Salvador shortly after a removal order was suspended. This case marks the fourth instance this year of the administration being ordered to rectify mistaken deportations due to administrative errors. Explain It To Me Like I'm 5: A judge in New York told the Trump administration to bring back a man...

Read more
‘You are your own first responder’: Michigan Church security guard details confronting gunman
USA

‘You are your own first responder’: Michigan Church security guard details confronting gunman

by My News Wave
24 June 2025
0

Jay Trombley, a member of CrossPointe Community Church's security team, confronted an active shooter, Brian Browning, who opened fire during a service in Wayne, Michigan. Trombley and other staff members engaged the gunman, preventing a larger tragedy, while Browning’s motives remain unclear; he was reportedly suffering from a mental health crisis. Explain It To Me Like I'm 5: On a Sunday morning at a church in Michigan, a brave man named Jay Trombley helped stop...

Read more
Zohran Mamdani stuns Andrew Cuomo in NYC mayor primary
USA

Zohran Mamdani stuns Andrew Cuomo in NYC mayor primary

by My News Wave
24 June 2025
0

Andrew Cuomo has conceded the New York City mayoral Democratic primary to Zohran Mamdani, marking a significant political upset as Mamdani, a 33-year-old democratic socialist, emerges as a potential first Muslim and Indian American mayor. With a platform focused on social equity, Mamdani's victory reflects a shift in Democratic voter priorities, particularly following Cuomo's controversial tenure as governor. Explain It To Me Like I'm 5: Andrew Cuomo, a former governor, lost to a younger candidate...

Read more
Edward Coristine, Key Player on Elon Musk’s DOGE Team, Resigns
USA

Edward Coristine, Key Player on Elon Musk’s DOGE Team, Resigns

by My News Wave
24 June 2025
0

Edward Coristine, a 19-year-old operative for the Department of Government Efficiency known as "Big Balls," resigned amid criticism of his inexperience and controversial background. Hired by Elon Musk's team to reduce federal bureaucracy, he oversaw various agency projects, including budget cuts at the State Department and immigration visa sales, before his email was deactivated following his resignation. Explain It To Me Like I'm 5: Edward Coristine, a young government worker known as "Big Balls," quit...

Read more
20 people injured by lightning strike at South Carolina lake
USA

20 people injured by lightning strike at South Carolina lake

by My News Wave
24 June 2025
0

Twenty people were injured, including eight adults and twelve minors, due to a lightning strike at Dominion Beach Park in South Carolina on Tuesday, with twelve individuals hospitalized for non-life-threatening injuries. First responders coordinated effectively to assess and care for the victims, and the park is set to reopen after safety assessments. Explain It To Me Like I'm 5: A lightning strike at a lake in South Carolina hurt twenty people, but they are all...

Read more
U.S. government prosecutors and Diddy’s defense team rest their cases
USA

U.S. government prosecutors and Diddy’s defense team rest their cases

by My News Wave
24 June 2025
0

The U.S. government rested its case against Diddy, presenting 34 witnesses over six weeks, while Diddy's defense opted not to call any witnesses, instead arguing for a dismissal based on insufficient evidence. As the trial approaches its conclusion, closing arguments are set to begin Thursday after jury instructions are finalized. Explain It To Me Like I'm 5: Diddy is on trial for serious charges, and both the government and his lawyers have finished presenting their...

Read more
News Wave

News Summarized. Time Saved. Bite-sized news briefs for busy people. No fluff, just facts.

CATEGORIES

  • Africa
  • Asia Pacific
  • Australia
  • Business
  • Canada
  • Entertainment
  • Europe
  • India
  • Middle East
  • New Zealand
  • Sports
  • Technology
  • UK
  • USA
  • World

LATEST NEWS STORIES

  • Rod Stewart on Glastonbury: 'I wish they wouldn't call it the tea time slot'
  • Microsoft Extends Windows 10 Security Updates for One Year with New Enrollment Options
  • Why art dealers are up in arms at the EU’s new anti-terror legislation
  • About Us
  • Disclaimer
  • Privacy Policy
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact Us

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • USA
  • Business
  • Sports
  • Entertainment
  • Technology

Copyright © 2025 News Wave
News Wave is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In