Is credit card debt forgiveness a good idea? Experts weigh in

In the U.S., credit card debt is commonplace. In fact, household credit card debt across the country totaled $1.13 trillion during the fourth quarter of 2023. And, credit card balances increased by $50 billion from Q3 to Q4 2023, according to the Federal Reserve. 

And, while credit cards can be useful financial tools, they can also cause financial hardship if you aren’t careful. After all, credit card accounts often have high interest rates and minimum payment structures that make it difficult to pay down what you owe. 

But if you’re struggling with credit card debt, you have options for debt relief, including credit card debt forgiveness. With these programs, debt relief experts negotiate with your lenders to get them to accept a lesser amount of money than what you owe. If the program is successful, your lenders will forgive a portion of your debt — but are these programs a good idea? Here’s what the experts say.

Find out how a credit card debt forgiveness program can help you achieve debt relief now. 

Is credit card debt forgiveness a good idea? Experts weigh in

Credit card debt forgiveness, “also known as debt negotiation or debt settlement, involves negotiating with creditors to reduce the outstanding balance on your credit card debt,” says Jordan Mangaliman, CEO of Goldline Financial Services. “While it can offer relief from overwhelming debt burdens, it also comes with pros and cons.” 

Pros of credit card debt forgiveness

Here are the pros to be aware of with credit card debt forgiveness: 

Potential debt reduction

“The primary advantage of debt settlement is that it can significantly reduce the total amount of debt you owe,” says Mangaliman. “Creditors may agree to accept a lump sum payment that is less than the total balance owed, allowing you to pay off your debt for less than you originally owed.”

That, in turn, can make it easier to pay off what you owe in a timely manner. 

“You will be able to settle for less than what is owed,” says Brandon Robinson, president and founder of JBR Associates. “Sometimes considerably less.”

Learn more about your credit card debt forgiveness options today. 

An expedited resolution

“Debt settlement can provide a quicker resolution to your debt problems compared…