Will credit card debt forgiveness cover my $3,000 debt?

If you've slowly but surely built up your credit card debt this year you can take comfort knowing you're not alone. The average American has around $8,000 in credit card debt currently, contributing to a record cumulative total of $1.14 trillion right now. That's a lot of money to owe, particularly considering that the average credit card interest rate right now is around 23%, a record high.

Fortunately, there are multiple debt relief strategies available for borrowers. Credit card debt forgiveness, in which a portion of your existing balance is wiped out, could be attractive for those who owe a five or six-figure sum. But what about those borrowers who less but are still burdened with their existing debt? Will credit card debt forgiveness, for example, cover a $3,000 debt? That's what we'll break down below.

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Will credit card debt forgiveness cover my $3,000 debt?

In short, no, credit card debt forgiveness won't cover your $3,000 debt. Not even a portion of it will qualify. That's because most credit card debt forgiveness servicers require a minimum amount of debt to qualify and that figure is usually $7,500 – more than double a $3,000 sum. 

You'll also need to demonstrate a financial hardship, like a job loss or medical issue, that's preventing you from repaying what you owe and it often helps if you're behind on payments as maintaining a monthly payment schedule typically indicates an ability to pay, even if it's slower than preferred. But those additional caveats won't even matter if your existing balance doesn't mean the minimum balance threshold. 

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Debt relief alternatives

Whether you have a $3,000 debt or more, there are some alternatives to a forgiveness program worth exploring. Specifically, consider:

• Contacting your credit card company directly: Your credit card company won't know you have a problem paying your debt until you contact them. So give them a call to see if there's a potential workable solution. This may also require proof of financial hardship but most servicers are willing to negotiate at least some figure versus losing out on being paid back at all. So call them to see what's possible.
• A debt consolidation loan: A debt consolidation loan is a personal loan that can help consolidate your existing credit card debt, often at a much lower interest rate than you'd otherwise continue to pay via a credit card. With credit card interest rates around 23% now and personal loans averaging just 13%, approximately, there's a lot of potential savings to explore here.
• A debt management program: A debt management program can help you regain your financial freedom while also helping you avoid getting stuck in similar situations in the future. This program will allow you to pay multiple debts with a single monthly payment coordinated by a third party (the debt relief company). 

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The bottom line

If you only have $3,000 in credit card debt you won't qualify for a forgiveness program. But that doesn't mean that you're out of options either. Consider contacting your credit card company directly before exploring your debt consolidation loan and debt management program alternatives. Collectively or just individually, these can provide a clear path toward financial freedom, even if it requires a bit more effort than a forgiveness program otherwise would.