Can I get my credit card debt written off? (2024)

FAQs

Can I get my credit card debt written off? ›

The simple answer to this question is yes, you can get your credit card debt written off — at least in certain cases. But as you may imagine, there's nothing simple about that process, which often includes negotiations with credit card companies and debt collection agencies.

Most credit card companies won't provide forgiveness for all of your credit card debt. But they will occasionally accept a smaller amount to settle the balance due and forgive the rest. Or the credit card company might write off your debt. But this step doesn't eliminate the debt—it's often sold to a collector.

Outside of bankruptcy or debt settlement, there are really no other ways to completely wipe away credit card debt without paying. Making minimum payments and slowly chipping away at the balance is the norm for most people in debt, and that may be the best option in many situations.

Typically, a credit card company will write off a debt when it considers it uncollectable. In most cases, this happens after you have not made any payments for at least six months. However, each creditor has a different process for determining whether a debt is uncollectable.

Use a debt settlement program

With a debt settlement program, the goal is to get your creditors to accept a lump-sum payment that's lower than your balance to "settle" the debt. If successful, the remaining portion of the balance is forgiven.

Cancel student debt for borrowers who entered repayment a long time ago. Borrowers with undergraduate debt would qualify for forgiveness if they entered repayment 20 years ago or more, and borrowers with graduate school debt would qualify for forgiveness if they entered repayment 25 years ago or more.

Unfortunately, there is no such thing as a government-sponsored program for credit card debt relief. In fact, if you receive a solicitation that touts a government program to get you out of debt, you may want to think twice about working with that company.

It will take 47 months to pay off $20,000 with payments of $600 per month, assuming the average credit card APR of around 18%. The time it takes to repay a balance depends on how often you make payments, how big your payments are and what the interest rate charged by the lender is.

If you only make the minimum payment each month, it will take about 460 months, or about 38 years, to pay off that $30,000 balance.

Most negative items should automatically fall off your credit reports seven years from the date of your first missed payment, at which point your credit score may start rising. But if you are otherwise using credit responsibly, your score may rebound to its starting point within three months to six years.

How to pay off credit card debt when you have no money? ›

Most states or jurisdictions have statutes of limitations between three and six years for debts, but some may be longer. This may also vary depending, for instance, on the: Type of debt. State where you live.

If you want to get out of debt as quickly as possible, list your debts from the highest interest rate to the lowest. Make the minimum monthly payment on each, but throw all your extra cash at the highest interest debt.

Filing for Chapter 7 bankruptcy wipes out unsecured debt such as credit cards, while Chapter 13 bankruptcy lets you restructure debts into a payment plan over 3 to 5 years and may be best if you have assets you want to retain.

The best way to do this involves creating a monthly budget, consolidating your debts to pay them off faster, building an emergency fund and not using credit cards for spending in the short-term. You can do all of this on your own, but you certainly don't have to.

There aren't any government-backed credit card relief programs, so any claims otherwise are likely scams. While you are unlikely to have the debt completely forgiven, it may be possible to work out a lower payment plan, have the company write off a portion of the debt or lower your interest rate for a set period.

This is often done using legal procedures but might be agreed by an individual creditor on your request. As with any write-off, you will have to convince the creditor that your situation means a partial write-off is in their best interest as well as in yours.

What percentage will credit card companies settle for? Creditors often accept 20% to 100% of the outstanding balance. The actual amount they are willing to settle for depends on individual circ*mstances and negotiation skills.

That's because, as unsecured revolving debts, credit cards typically come with high interest rates. But did you know you may be able to negotiate with your credit card company? Negotiations may result in lower interest rates, better payoff terms or even a lower principal balance.

Credit card companies will often have programs in place or other ways to help their customers repay what they owe on their cards. So, if you're struggling to find the money in your budget to pay your credit cards, here's how your credit card company may be willing to help you out.