What are credit card debt forgiveness programs? How long do they take?
The credit card debt of Americans has reached record highs, collectively worth more than one trillion dollars. Debt forgiveness may provide some relief.
If you’ve rung up thousands of dollars in credit card debt, you are by no means alone.
The average card debt balance per consumer is more than $6,000, and Americans have amassed a total of more than one trillion dollars in credit card loans collectively. These are record-breaking figures, and an increasing number of people are also falling behind on their payments.
If you are one of those who are overwhelmed by the amount you owe on your cards, one option you could consider is signing up for a credit card forgiveness program.
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What are credit card debt forgiveness programs?
The concept of having your debt forgiven may be exciting, but the process takes a lot of effort, and also, a considerable amount of time.
These forgiveness plans, also known as debt settlement or debt relief programs, target individuals who are struggling with an overwhelming loan balance to help them reduce or eliminate their debt burden.
These programs involve negotiating with creditors or debt collectors to reach a settlement agreement that allows the debtor to repay a portion of their outstanding debt, often at a reduced amount, in exchange for the creditor forgiving the remaining balance.
It is highly unlikely that your creditor will forgive 100% of what you owe them. However they would still prefer to receive some money than no money at all. In many cases, creditors are willing to accept a lower amount of the total debt owed in order to resolve the account and avoid the risk of the debtor defaulting entirely.
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How long do credit card debt forgiveness programs take?
According to the Freedom Debt Relief website, going through the whole process of debt settlement can last anywhere from two to four years.
This period includes the evaluation of your debt situation, crafting your payment plan, negotiating with your creditors to agree on a program you can realistically follow, and most importantly, sticking to the repayment schedule.
The length of time that it will take for you to resolve the matter will depend on how large your debt is, how much you earn, and your ability to keep up with the payment plan. You can formulate the scheme yourself, or you can pay professionals to make one for you as well as negotiate with your creditors on your behalf.