Stuck with $30,000 in credit card debt? Here's how much a forgiveness plan can cover.
If you've checked your credit card bill recently you may not be happy with what you've seen. With credit card interest rates at a near-record high of 23% currently – and the average American owing around $8,000 right now – you may find it difficult to make much more than a minimum monthly payment. That could lead to cascading debt with no clear payoff date in sight as making minimum payments ensures years of credit card debt, assuming you don't use your card in the interim. This is partially why Americans now collectively owe approximately $1.4 trillion on their cards, a record high.
Fortunately, whether you owe that $8,000 or a higher sum like $20,000 or even $30,000, there are some helpful debt relief options available. One of the best to pursue for those who owe a five-figure sum like $30,000 is credit card debt forgiveness. By working with a reputable debt relief servicer, borrowers can potentially qualify to have a significant portion of their existing debt forgiven. But how much of a $30,000 credit card debt can be forgiven? That's what we'll break down below.
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How much of a $30,000 credit card debt will a forgiveness plan cover?
Credit card debt forgiveness won't eliminate your existing debt. If you're looking to start clean and be debt-free you'll need to pursue a more drastic course via bankruptcy. But that alternative comes with severe consequences including long-term damage to your credit score and, thus, your ability to obtain inexpensive, low-interest-rate credit in the future. If you want to avoid that scenario then credit card debt forgiveness is your next best option.
In general, credit card debt forgiveness covers 30% to 50% of your existing debt. If you have $30,000 in credit card debt then you can expect to settle for somewhere between $9,000 and $15,000. While that may be enough relief to get you back toward financial independence, it won't be available by simply applying.
You'll need to qualify for credit card debt forgiveness by having more than $7,500 in debt (which applies here). But you'll also need to be able to demonstrate an existing financial hardship that prevents you from being able to make your payments as agreed upon. This could be the loss of employment, a medical issue or something else. Documentation demonstrating this will need to be provided to the lender. You're also more likely to qualify if you're already behind on your monthly payments. If you've been paying your card on time each month, even if it's just via a minimum payment that's done little to drop your balance, lenders are less likely to offer you help via a forgiveness plan. After all, making payments on time demonstrates an ability to repay what you owe, even if it's on a slower schedule than you may prefer.
If you meet these qualifications, however (and, possibly, some others depending on the servicer in question), you may be able to knock down that $30,000 balance into the four digits.
Check your credit card debt forgiveness eligibility online today.
The bottom line
Credit card debt forgiveness can be a great resource for borrowers struggling to pay off a balance of $30,000 or more. But it won't cover the full amount owed. If borrowers need to eliminate their balance in full other, more drastic alternatives may need to be explored. Credit card debt forgiveness, however, can make a big dent. Options like debt consolidation loans, debt management programs, and even balance transfer cards can also help. So do your research and speak to a professional debt relief specialist to best determine which recourse is most applicable to your current financial circumstances.
