3 ways to have your credit card debt forgiven in the final weeks of 2024

As the year draws to a close, millions of Americans continue to feel the extra weight on their budgets caused by years of high inflation. While inflation has dipped from its recent peaks, the elevated costs for essentials like housing and groceries remain. That, in turn, has made it hard for many households to cover the basics, leading to an uptick in reliance on credit cards. For example, credit card debt in the U.S. increased from $1.14 trillion in Q2 2024 to $1.17 trillion the following quarter, a clear indicator of how reliant Americans have become on this type of borrowing.

But while using a credit card to help make ends meet may solve the problem temporarily, it's not a good long-term strategy. After all, the average credit card interest rate is hovering above 23% currently, so any credit card balance that isn't paid off in full each month is going to quickly accrue interest charges. And with the average cardholder carrying over $8,000 in credit card debt currently, that can cause further financial issues over time, making it tough to keep up with your minimum payments.

If you're struggling to pay off your credit cards, it's important to act before your debt becomes unmanageable. There are lots of debt relief options to consider in this situation, including credit card debt forgiveness. With debt forgiveness, the goal is to get a portion of your card debt written off by your card issuer, reducing your total balance — and it could be a smart strategy to use in the final weeks of 2024. 

Compare the debt relief options available to you here.

How to have your credit card debt forgiven in the final weeks of 2024

If you want to have a portion of your credit card debt forgiven before year's end, here are three debt forgiveness strategies to consider:

Negotiate a reduced payoff amount on your own

While there are more formal debt forgiveness strategies you can use, your first step toward debt relief could be as simple as contacting your credit card issuer and negotiating a reduced balance. If you're struggling financially, many creditors are open to working with you, especially if you're behind on payments. After all, credit card companies generally prefer to recover a portion of the debt rather than risk losing it entirely if you default or declare bankruptcy.

When you reach out to your card issuer, start by explaining your situation and ask about the possibility of settling your debt for less than what you owe. Depending on your circumstances, they may agree to a lump-sum payment or set up a hardship program that temporarily reduces your interest rate or monthly payments. While it requires upfront effort, negotiating directly with your creditor can be one of the quickest and most cost-effective ways to reduce your debt.

Learn how to have your credit card debt forgiven now.

Work with a debt relief company on a settlement plan

Enrolling in a debt forgiveness (i.e. debt settlement) program through a debt relief company can be a powerful strategy, especially for those who prefer professional assistance. When you take this route, the company you work with acts as an intermediary, negotiating with your creditors to settle your balances for a fraction of what you owe. 

Once you're enrolled, you'll stop making payments to your creditors and instead deposit monthly payments into a dedicated account managed by the debt relief company. Over time, these funds accumulate, and when enough money has been put into the account, lump-sum settlement offers are made. 

The major upside to using a debt relief company during negotiations is the experience their experts offer. Because the debt relief specialists know how to work with creditors and will often have established relationships with them, this approach often results in paying significantly less than the original balance — sometimes 50% or more. 

Hit reset by filing for bankruptcy

If your debt is completely unmanageable, filing for bankruptcy may be the most viable option to find relief. Chapter 7 bankruptcy allows for the discharge of most unsecured debts, including credit card balances, while Chapter 13 bankruptcy enables you to establish a court-approved repayment plan. This repayment plan typically lasts three to five years, after which any remaining eligible debt may be forgiven. 

But while bankruptcy can offer a fresh financial start, it's not a decision to take lightly. Filing will significantly impact your credit score for up to a decade, potentially affecting your ability to secure future loans or housing. You'll also need to meet certain eligibility requirements and may have to liquidate some of your assets to satisfy creditors. So, if you're considering this option, it's important to consult a bankruptcy attorney to determine if it's the right choice.

The bottom line

If you're dealing with expensive credit card debt, don't ignore the problem any longer. By addressing your debt now, you can enter 2025 with greater peace of mind and a clearer financial future. There are numerous ways to do so, but if you want to pursue debt forgiveness, these strategies can help reduce your financial stress and set you on a path toward greater stability. Whether you choose to negotiate with creditors, enroll in a settlement program or explore bankruptcy, the key is to take action now before the issues compound.