Patrick Austin, J.D. | 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.
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:
Below, we’ll break down each of these strategies in detail.
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:
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.
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:
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:
This calculator is for educational purposes only.
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Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
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