5 big benefits of enrolling in credit card debt forgiveness this fall
If you're drowning in credit card debt right now, you're certainly not alone. The total amount of credit card debt has been climbing nationwide, and millions of Americans are now struggling to get rid of what they owe. Adding to the issue is the fact that credit card rates are inching toward record highs, so cardholders who are carrying a balance are now paying heftier interest charges on what they owe.
But while credit card debt can be difficult to tackle, it's certainly not impossible. For example, credit card debt forgiveness programs — also known as debt settlement programs — can be a game-changer. These programs work by negotiating with your creditors to reduce the total amount you owe, which could result in paying thousands of dollars less than your current balance.
While these programs come with their fair share of challenges, for many in dire straits, they represent a viable option to break free from the cycle of minimum payments and growing balances. As we enter the fall months, there are several compelling reasons why this might be the ideal time to enroll in a credit card debt forgiveness program if you're struggling with serious debt.
Learn how debt forgiveness — and your other debt relief options — could benefit you here.
5 benefits of enrolling in credit card debt forgiveness this fall
Whether you've been battling debt for years or have recently found yourself in over your head, debt forgiveness could help. Here's why:
Substantial debt reduction
For those buried under serious credit card debt, a debt forgiveness program's most immediate and impactful benefit is the potential for significant debt reduction. While the results vary, debt settlement could reduce your debt by 30% to 50% of your current balance. For someone with $30,000 in credit card debt, this could mean savings of $9,000 to $15,000.
With reduced balances, you can potentially become debt-free in two to four years, greatly expediting the payoff process compared to decades of minimum payments. There are other benefits, too. For example, once you're enrolled, many programs can help stop or reduce the accumulation of interest, preventing your balance from growing further.
Ready to get rid of your high-rate credit card debt? Find out what help is available to you now.
A single, manageable monthly payment
One of the more stressful aspects of carrying serious credit card debt is juggling multiple payments to different creditors. Debt forgiveness programs offer a solution to that issue. Instead of multiple due dates and minimum payments, you make one monthly payment to your debt settlement company. Having a single, consistent payment makes it easier to budget and plan your finances.
End to creditor communication
When you're in serious debt, the calls and letters from creditors and collection agencies can feel overwhelming or scary — especially if they escalate to threats of legal action or wage garnishment. Enrolling in a debt forgiveness program can help, though, as the debt settlement company becomes the point of contact for your creditors, shielding you from direct communication. The relief from constant creditor contact can be invaluable for those who have been on the receiving end of the aggressive collections tactics that many creditors will use to try and collect payment.
Avoiding bankruptcy
When you're facing serious issues with credit card debt, bankruptcy might seem like the only option. However, debt forgiveness programs offer an alternative, one with less severe consequences comparatively. For example, while debt settlement does affect your credit score, the impact is generally less severe. Plus, you can typically start rebuilding your credit sooner if you opt for debt forgiveness over bankruptcy. Debt settlement generally doesn't require you to liquidate your assets, either, but some forms of bankruptcy do.
Professional guidance and financial education
Many people with serious credit card debt feel lost and unsure about how to improve their financial situation. Debt forgiveness programs can help by providing experts who understand the ins and outs of dealing with creditors. These experts are prepared to handle the complex negotiation process, taking some pressure off you.
Plus, many debt forgiveness programs offer education on budgeting, saving and avoiding future debt. The debt experts can also help create a personalized financial plan that fits your specific situation and goals, which can be crucial for resolving your current debt and building a stronger financial future.
The bottom line
For those struggling with serious credit card debt, enrolling in a debt forgiveness program this fall could be a turning point. The potential for substantial debt reduction, simplified payments, relief from creditor harassment, an alternative to bankruptcy and professional financial guidance make these programs a powerful tool for those feeling overwhelmed by their credit card balances.
It's important to note that debt forgiveness programs have their drawbacks. They can impact your credit score, and not all debts may be eligible for settlement. The forgiven amount may be taxable as income, too, so it's crucial to thoroughly research and understand the terms of any program before enrolling.
