Start My Answer

Credit Card Debt Forgiveness Act Explained

Patrick Austin | April 12, 2023

Summary: In contrast to student loan debt, there is no federal credit credit card debt forgiveness program or law that will wipe the proverbial slate clean on those outstanding credit card balances. In other words, a Credit Card Debt Forgiveness Act does not exist in the US. Nevertheless, there are strategies and techniques you can use to potentially reduce the total amount of credit card debt you owe. SoloSettle can help you settle your credit card debt for good.

Credit card debt forgiveness is when a credit card company does not make you repay all of your outstanding balance. It’s possible under certain conditions, but you always have to give something up to get it.

The idea behind credit card debt forgiveness is that if creditors can’t get the full amount owed in a reasonable timeframe, they may decide that something is better than nothing and forgive the rest. But debt collectors will only resort to forgiveness in extreme situations, usually after several missed minimum payments. So it’s more about your creditor making the best of an unprofitable situation.

The United States does not have a Credit Card Debt Forgiveness Act to regulate debt forgiveness granted by creditors and debt collectors. Regardless, there are many tricks you can employ to reduce your overall debt from credit cards. Keep reading to learn more.

Settle with SoloSettle

Make an Offer

Use these strategies and techniques to reduce your credit card debt

There are some notable strategies and techniques to consider which are proven to help reduce the total amount of credit card debt you may ultimately have to pay down. Please be advised that these strategies and techniques are not a cure-all and will not be able to get all of your credit card debt wiped away (reality check: no method, strategy or federal law currently exists to forgive and forget all credit card debt). Nevertheless, it may be possible to get a percentage of your credit card debt reduced through the following strategies and techniques:

  • Negotiate with your creditors to reach a debt settlement agreement.
  • Consolidate your credit card debt.
  • Wait for the applicable statute of limitations on your credit card debt to expire.

Below, we’ll break down each of these strategies in detail.

Negotiate a debt settlement agreement with your creditor(s)

A worthwhile credit card debt reduction strategy is attempting to negotiate a “debt settlement” with your creditor(s), which would be your credit card company, or companies. A credit card debt settlement sets the amount you are able to repay (which is typically either paid via a lump-sum or over the course of a specified period of time). The remaining balance is wiped away.

Here is a general overview of how you could achieve a credit card debt settlement:

  • Be prepared. Do the necessary prep work, research and calculations before contacting any of your creditors. Why? Because you need to figure out how much you currently owe and what monthly payment you can reasonably afford post-settlement.

  • Contact your creditor(s) to discuss your situation. When you contact your credit company, or companies, make sure to calmly and professionally present the relevant facts and provide an explanation as to why you are unable to afford making your current monthly payments.

  • Engage in credit card debt settlement negotiations. A good way to initiate credit card debt settlement negotiations is by proposing either a lump-sum payment or a modified monthly payment. You can then engage in a back-and-forth with your creditor(s) to, hopefully, reach an amicable settlement.

  • Make sure to get the credit card debt settlement agreement in writing. If you are able to reach a credit card debt settlement agreement, make sure to get a copy of the agreement in writing. Also,make sure you possess a clear understanding of the terms and are comfortable with the agreement’s provisions.

SoloSettle makes the debt settlement process easy. As a tech-based approach to debt settlement, SoloSettle’s software sends and receives settlement offers until an agreement is reached between the debtor and creditor.

Check out the following video to learn more about how SoloSettle can help you settle your credit card debt—once and for all.

Consolidate your credit card debt

Debt consolidation will not forgive or wipe away the balance of credit card debt you currently owe. Nevertheless, credit card debt consolidation is a generally effective technique for most people to help reduce monthly payment obligations and can help avoid accruing additional interest, fees and potential penalties.

You can consolidate your credit card debt through multiple avenues, including:

  • Transfer multiple balances to a single credit card.
  • Take out a personal loan and use the funds to pay off your credit cards.
  • Take out a home equity loan and use the funds to pay off your credit cards.

Wait for the statute of limitations on your credit card debt to run out

Fair warning: waiting until the statute of limitations expires is not the best credit card debt reduction strategy and really should not be considered unless and until you have exhausted all other options. Nevertheless, it is a strategy that exists. Basically, to achieve credit card debt reduction via the statute of limitations, you will need to be extremely patient, disciplined, and comfortable with ignoring the debt entirely.

Patience is necessary because most states afford creditors multiple years to pursue a recovery on an outstanding debt. Oh yeah, and in some states, if you even acknowledge the credit card debt exists, the clock on the statute of limitations for that debt can restart giving the creditor even more time to come after you for repayment.

If you are patient, disciplined, and devoid of any fear or anxiety with being sued for a delinquent debt and receiving multiple phone calls and letters from debt collectors, there is an eventual point where the statute of limitations expires. After that time, the creditor can still take you to court, but you will have the ability to file a motion to get the lawsuit dismissed due to the expiration of the applicable statute of limitations.

Use the Statute of Limitations Calculator below to determine your state's statute of limitations on credit card debt:

Statute of Limitations Calculator

Select your state.

Choose the debt type.

Select the last day you made a payment.


The Satute of Limitations

This calculator is for educational purposes only.

Big Takeaways

  • There is no state or federal law directly authorizing the forgiveness of credit card debt (it’s a great idea, though).
  • There are multiple strategies available when considering how to reduce or consolidate your total credit card debt.
  • Negotiating a credit card debt settlement and/or consolidating your debt are proven debt reduction strategies that can help net an overall reduction in the amount of credit card debt you will need to pay down.
  • SoloSettle, powered by Solosuit, can help you settle your credit card debt and move on with your life.

What is SoloSuit?

SoloSuit makes it easy to fight debt collectors.

You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.

SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to answer a summons for debt collection in your state

Here's a list of guides for other states.

All 50 states.



Guides on how to beat every debt collector

Being sued by a different debt collector? Were making guides on how to beat each one.


We have answers

Join our community of over 40,000 people.


You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.


Get Started

Win against credit card companies

Is your credit card company suing you? Learn how you can beat each one.

Going to Court for Credit Card Debt — Key Tips

How to Negotiate Credit Card Debts

How to Settle a Credit Card Debt Lawsuit — Ultimate Guide

Get answers to these FAQs

Need more info on statutes of limitations? Read our 50-state guide.

Why do debt collectors block their phone numbers?

How long do debt collectors take to respond to debt validation letters?

What are the biggest debt collector companies in the US?

Is Zombie Debt Still a Problem in 2019?

SoloSuit FAQ

If a car is repossessed, do I still owe the debt?

Is Portfolio Recovery Associates Legit?

Is There a Judgment Against Me Without my Knowledge?

Should I File Bankruptcy Before or After a Judgment?

What is a default judgment?— What do I do?

Summoned to Court for Medical Bills — What Do I Do?

What Happens If Someone Sues You and You Have No Money?

What Happens If You Never Answer Debt Collectors?

What Happens When a Debt Is Sold to a Collection Agency

What is a Stipulated Judgment?

What is the Deadline for a Defendants Answer to Avoid a Default Judgment?

Can a Judgement Creditor Take my Car?

Can I Settle a Debt After Being Served?

Can I Stop Wage Garnishment?

Can You Appeal a Default Judgement?

Do I Need a Debt Collection Defense Attorney?

Do I Need a Payday Loans Lawyer?

Do student loans go away after 7 years? — Student Loan Debt Guide

Am I Responsible for My Spouses Medical Debt?

Should I Marry Someone With Debt?

Can a Debt Collector Leave a Voicemail?

How Does Debt Assignment Work?

What Happens If a Defendant Does Not Pay a Judgment?

How Does Debt Assignment Work?

Can You Serve Someone with a Collections Lawsuit at Their Work?

What Is a Warrant in Debt?

How Many Times Can a Judgment be Renewed in Oklahoma?

Can an Eviction Be Reversed?

Does Debt Consolidation Have Risks?

What Happens If You Avoid Getting Served Court Papers?

Does Student Debt Die With You?

Can Debt Collectors Call You at Work in Texas?

How Much Do You Have to Be in Debt to File for Chapter 7?

What Is the Statute of Limitations on Debt in Washington?

How Long Does a Judgment Last?

Can Private Disability Payments Be Garnished?

Can Debt Collectors Call From Local Numbers?

Does the Fair Credit Reporting Act Work in Florida?

The Truth: Should You Never Pay a Debt Collection Agency?

Should You Communicate with a Debt Collector in Writing or by Telephone?

Do I Need a Debt Negotiator?

What Happens After a Motion for Default Is Filed?

Can a Process Server Leave a Summons Taped to My Door?

Learn More With These Additional Resources:

Need help managing your finances? Check out these resources.

How to Make a Debt Validation Letter - The Ultimate Guide

How to Make a Motion to Compel Arbitration Without an Attorney

How to Stop Wage Garnishment — Everything You Need to Know

How to File an FDCPA Complaint Against Your Debt Collector (Ultimate Guide)

Defending Yourself in Court Against a Debt Collector

Tips on you can to file an FDCPA lawsuit against a debt collection agency

Advice on how to answer a summons for debt collection.

Effective strategies for how to get back on track after a debt lawsuit

New Hampshire Statute of Limitations on Debt

Sample Cease and Desist Letter Against Debt Collectors

The Ultimate Guide to Responding to a Debt Collection Lawsuit in Utah

West Virginia Statute of Limitations on Debt

What debt collectors cannot do — FDCPA explained

Defending Yourself in Court Against Debt Collector

How to Liquidate Debt

Arkansas Statute of Limitations on Debt

Youre Drowning in Debt — Heres How to Swim

Help! Im Being Sued by My Debt Collector

How to Make a Motion to Vacate Judgment

How to Answer Summons for Debt Collection in Vermont

North Dakota Statute of Limitations on Debt

ClearPoint Debt Management Review

Indiana Statute of Limitations on Debt

Oregon Eviction Laws - What They Say

CuraDebt Debt Settlement Review

How to Write a Re-Aging Debt Letter

How to Appear in Court by Phone

How to Use the Doctrine of Unclean Hands

Debt Consolidation in Eugene, Oregon

Summoned to Court for Medical Bills? What to Do Next

How to Make a Debt Settlement Agreement

Received a 3-Day Eviction Notice? Heres What to Do

How to Answer a Lawsuit for Debt Collection

Tips for Leaving the Country With Unpaid Credit Card Debt

Kansas Statute of Limitations on Debt Collection

How to File in Small Claims Court in Iowa

How to File a Civil Answer in Kings County Supreme Court

Roseland Associates Debt Consolidation Review

How to Stop a Garnishment

Debt Eraser Review

Do Debt Collectors Ever Give Up?

Can They Garnish Your Wages for Credit Card Debt?

How Often Do Credit Card Companies Sue for Non-Payment?

How Long Does a Judgement Last?

​​How Long Before a Creditor Can Garnish Wages?

How to Beat a Bill Collector in Court

Not sued yet?

Use our Debt Validation Letter.


Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.


Let's Do It

It only takes 15 minutes.

And 50% of our customers' cases have been dismissed in the past.


"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather



Get Started