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Can I get my credit card debt written off?

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You may be able to get your lenders to write off some, or all of, your credit card debt. 

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Credit card debt is nothing new in the United States. But according to the U.S. Government Accountability Office, the level of credit card debt consumers face has reached record highs. Today, Americans owe more than $1 trillion to credit card companies. 

“Many Americans today are faced with weathering increased costs from higher-than-average inflation over the past two years, while living on an income that is just not keeping up with those inflation rates,” says Patrick Yono, founder of Sure Life Financial in Novi, Michigan. “As a result, individuals and families are facing more personal debt than many have ever seen in their lifetime.”

But what if you’re struggling to find a way to pay your debt off? Do you have to deal with high-interest credit card debt for the foreseeable future or is there a way out?

Get in touch with a debt relief expert to help eliminate your credit card debt today

Can I get my credit card debt written off?

The simple answer to this question is, “yes.” But as you can probably imagine, there’s nothing simple about getting your credit card debt written off. The process often includes negotiations with credit card companies and debt collection agencies. In some cases, it could even include a few appearances at your local courthouse.

How to get your credit card debt written off

Although it may be possible for you to get your credit card debt written off on your own, you’ll likely find it difficult to do so. As such, it’s best to reach out to a debt relief service to assist you in the process. There are two ways debt relief services can help get rid of your credit card debt:

Debt settlement service

Debt settlement services may not be able to get 100% of your debt written off, but they’re often able to wipe out a substantial portion of it. Here’s how the process works: 

  • Payments: You immediately stop paying your creditors when you sign up for a debt settlement program. Instead, you send your payments to the debt settlement company. The debt settlement company will store your payments in a special purpose savings account until you have enough money to settle your debts. 
  • Settlement negotiations: The debt settlement company starts negotiations with your lenders as soon as your special purpose savings account has enough of a balance to pay the settlements they reach. Although lenders are under no obligation to accept a settlement offer, they often do. 
  • The writeoff: The debt settlement company pays the lender the settled amount, clearing the debt. The lender then writes off the balance that wasn’t paid for as part of the settlement offer. Keep in mind that the amount of money the lender writes off is considered income for tax purposes. So, you’ll need to report your settled debts to the IRS. 

Debt settlement offers relief in many ways. Not only does it typically result in the reduction of your credit card balances, it often leads to more affordable payments. Moreover, you’ll likely pay your debts off far faster than you would if you were to continue making minimum payments. 

On the other hand, debt settlement involves foregoing payments to your lenders for several months, if not years. When your debt is settled, it will be reported as such to the credit reporting agencies. So, debt settlement will likely have a detrimental impact on your credit score.   

Bankruptcy

Bankruptcy is another way to get your credit card debt written off. Although this is an effective option, you should only use it as a last resort. After all, bankruptcy comes with a significantly negative impact to your credit score that will likely take several years to recover from. 

Learn more about your debt relief options here now.

Consider debt consolidation

If you want to get out of debt as quickly as possible, but don’t want to deal with the significant credit implications associated with having your debt written off, consider debt consolidation. There are two common ways to consolidate debts: 

  • Debt consolidation loan: You could take out a loan for the purpose of consolidating high interest credit card debt. If you do, be sure the new loan’s interest is lower than the interest you pay on your credit cards. 
  • Debt consolidation service: Debt consolidation services typically negotiate lower interest rates and fixed payment plans with your lenders on your behalf. You send a monthly payment to the consolidation service and they send individual payments to your lenders until your debt is paid in full.   

The bottom line

If you’re struggling with debt, “it is always a good idea to seek the advice of a financial professional,” says Yono. An expert “may even offer you alternate solutions that are more beneficial once they get to know you and your specific circumstances.” Get in touch with a debt relief expert today to learn more about your options



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Judge rules Louisiana law ordering schools to display Ten Commandments violates First Amendment

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Louisiana governor signs Ten Commandments law


Louisiana governor signs law requiring Ten Commandments be displayed in classrooms

00:43

A federal judge has temporarily blocked a Louisiana law that would have required public schools statewide to display the Ten Commandments in their classrooms by Jan. 1. U.S. District Judge John W. deGravelles of Baton Rouge, who was appointed by former President Barack Obama, ruled Tuesday that the law violates the free exercise and establishment clauses of the First Amendment.

The ruling found the Louisiana law was “unconstitutional on its face and in every application,” prohibited attorneys for defendants in this case from enforcing the mandate and required them to notify public schools of the change. Tuesday’s came alongside a preliminary injunction issued by the judge in a lawsuit brought by parents of a group of Louisiana public school students.

This is a developing story that will be updated with more information.



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Experts say Trump’s threatened China tariffs could actually help Beijing weather an economic storm

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Hong Kong — President-elect Donald Trump has threatened to slap up a tariff of up to 60% on all goods imported to the U.S. from China. While that may sound like a potent economic threat to a country where economic growth is already faltering, could it actually be just what China needs? 

“I do expect U.S.-China economic relations to be more volatile under Trump, but I think overall, this may turn out to be better for China,” Chen Zhiwu, the top finance professor at the University of Hong Kong and a former professor at Yale University, told CBS News.

Chen said if Trump does follow through with his threat of such steep tariffs on China, it “might force the leadership in Beijing to have no other choice but to focus on the economy — especially given that the Chinese economy right now is in very big trouble.”

Since the start of Trump’s first term in the White House, and through President Biden’s term, China’s economic growth has slowed from roughly 7% to 4.5%. The country’s property market has crashed because of massive overbuilding, leading to the rise of empty ghost cities. Youth unemployment rocketed to a new high of nearly 19% in September, dimming prospects for China’s future workforce.

Beijing’s intense focus over the past decade on bolstering its military to meet its geopolitical ambition of rivaling the U.S. and its European and Asia-Pacific allies has further sacrificed opportunities for domestic economic growth, said Chen.


How China plans to fix its economic slowdown

05:00

“If you count the number of warships, China has by far the highest number of warships than any country, higher than even the U.S.’ naval ships. What industries have grown the most so far this year? Definitely those warfare-related industries have gone up the most, but those consumer-oriented industries have had no growth or negative growth,” he said.

Most of China’s top 20 aerospace and defense stocks have recorded double-digit growth over the past year alone.

Tariffs “a good thing for China for the long term”?

“The pressure the U.S. is putting on China will become a good thing for China for the long term,” agreed Wang Xiangwei, a former editor-in-chief of the Hong Kong-based newspaper South China Morning Post.

China has relied on two primary engines to support rapid economic growth over the past 40 years, since former leader Deng Xiaoping initiated reforms and started opening the country up, Wang told CBS News. Those have been manufacturing cheap exports for the world by leveraging China’s long-cheap labor force, and later, spending billions on domestic infrastructure including roads, rail and airports. 

But labor has become more expensive with the rise of China’s booming middle class, and the government is running out of new things to build across the country. 

Beijing has found it difficult, meanwhile, to fire up a potential third engine of economic growth: The capacity of the country’s 1.3 billion people to consume domestically made products.

Trump’s threatened tariffs could give a needed external push for that to change, said Wang.

“I believe China’s going to suffer in the short term. In the long term, he’s [Trump] going to help China to make that painful transition,” Wang said, noting that in the U.S., domestic consumption accounts for 70% to 80% of the national GDP, while in China, it’s “only about 60%.”

In effect, pushing China’s own people to buy more of their country’s own goods and services could, in the view of the two analysts, prove to be Beijing’s best protection against Trump’s threatened tariffs.

“The best tool would be to stimulate consumption growth inside China,” said Chen. “At the moment, the leadership has not really tried to help the Chinese consumers by sending them government checks and even tax costs to corporations. I think if the Chinese government really moves in that direction more aggressively, then it would help the Chinese economy generate more internal domestic consumption demand to make up for some of their possible lost exports to the U.S.”

Beijing needs Washington, but tariffs could have a complex impact

During Trump’s first term as president, he imposed tariffs ranging from 10% to 25% on Chinese agricultural products imported to the U.S., including seafood, pork and dairy. Beijing retaliated with its own tariffs, kicking off a trade war between the world’s two biggest economies. 

Nearly eight years later, however, Beijing appears less able to wage such a war, due to its close economic links with the U.S.

“In terms of retaliation choices for China, it’s very limited,” said Chen. “China imports a lot of agricultural products like soybeans, corn. They may try to import more such agricultural products from Brazil, and also from Russia as one of their ways to retaliate against the U.S. But at the end of the day, China imports so much [computer] chips from Nvidia, Intel, especially Qualcomm,” Wang said. “Those products are what China needs. So, China cannot produce internally.”

In effect, if Beijing does impose retaliatory tariffs, it could be shooting itself in the proverbial foot. Tariffs would make all those products, vital to China’s continued economic and technological development, more expensive for its own people.

But another possible impact of Trump’s expected protectionist policies could actually be to push some of America’s oldest allies and trade partners closer to China, reversing the so-called decoupling of the U.S. and Western European economies from Beijing that Washington has pushed under Mr. Biden.

“The Biden administration did such a good job to more or less unite that,” said Chen. “If Trump makes the EU and NATO member countries upset, that makes it more possible for Germany, for France or Italy or even the U.K. to warm up more with China on the trade front. So, that may help neutralize, to some extent, the negative impact of the expected Trump tariffs on Chinese goods.”

Trump has claimed repeatedly that foreign companies would foot the bill, effectively absorbing the additional costs of exporting to the U.S. market imposed by his tariffs, but many economists disagree, and say it would effectively be a tax on American consumers.


Trump promises tariffs to help pay for economic plans

08:18

According to findings released by the National Retail Federation last week, U.S. consumers could lose between $46 billion and $78 billion in spending power per year on everything from clothes and toys to household appliances and travel goods if there is a 60% blanket tariff on Chinese goods. 

“Retailers rely heavily on imported products and manufacturing components so that they can offer their customers a variety of products at affordable prices,” NRF Vice President of Supply Chain and Customs Policy Jonathan Gold said. “A tariff is a tax paid by the U.S. importer, not a foreign country or the exporter. This tax ultimately comes out of consumers’ pockets through higher prices.”

All of that said, and despite Trump’s history of anti-China rhetoric, it remains unclear how quickly his administration might actually move to roll out sweeping tariffs, with some economists speculating that the president-elect plans, initially at least, to use the threat of additional levies as a cudgel to negotiate more favorable trade terms with Beijing. Trump could also choose to gradually phase in tariffs, delaying their full impact on China’s economy.

Will China attack Taiwan, and would Trump come to the rescue?

Trump’s return to the White House may also help Beijing further its interests with Taiwan, the democratically governed island of 23 million people just off China’s east coast that the country considers a renegade province. President Xi Jinping has vowed to bring Taiwan back under Beijing’s control, by force if necessary.

Since the U.S. government enacted the Taiwan Relations Act in 1979, the U.S. is strategically committed to aid in Taiwan’s defense in the event of any aggression, including by selling weapons to the island’s government. 

Open to interpretation, however, and left deliberately vague in the U.S. law, is whether Washington is obligated to directly defend Taiwan, using the power of the American military, if it does come under attack. 


Blinken arrives in China for talks over Russia, Taiwan, Middle East and more

04:37

President Biden, during his first term, said Washington would, breaking with the long-time policy of “strategic ambiguity” that the Biden White House later returned to.

“The sovereignty over Taiwan is the red line of all the red lines,” Wang told CBS News. “Trump, in his presidential campaign speeches, he made it very clear… [that he’s] unlikely to send troops to defend Taiwan.”

“I believe that China’s not going to invade Taiwan anytime soon,” Wang added, noting that Beijing has “so many problems it’ll have to fix at home.”

If Beijing did invade Taiwan, the fallout would be felt worldwide.

“That would be a devastating hit to the global economy,” said Chen. “I hope that it would not happen. So, maybe now, given the challenges with the Chinese economy, the leadership is realizing that without a stable economy, then all its global geopolitical ambitions would not have any economic foundation.”

contributed to this report.



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Hakeem Jeffries says Democrats will have a “family conversation” to “figure out what happened on election night”

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House Minority Leader Hakeem Jeffries said Tuesday that Democrats will in the weeks and months ahead engage in post-election analysis following bruising outcomes for the party last week, as Republicans will take control of the White House, Senate and possibly even the House.  

“We’re going to have a family conversation that needs to be clear-eyed, candid and comprehensive to figure out what happened on election night,” Jeffries said on “CBS Mornings.”

The New York Democrat acknowledged that “the American people have spoken,” saying the party has to to “work with the incoming administration whenever and wherever possible, and strongly disagree when necessary, and that’s going to be the approach that we take.”

The comments come as Republicans appear poised to hold onto their narrow majority in the House, with just a few seats to go. CBS News characterizes the House as leaning toward Republicans. 

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House Minority Leader Hakeem Jeffries on “CBS Mornings,” Nov. 12, 2024

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Democrats had hoped to flip the House this cycle, going on to elect Jeffries as the first Black speaker in history after he succeeded Speaker emerita Nancy Pelosi at the party’s helm in the lower chamber. 

Meanwhile, Republicans flipped the Senate in a key victory for the incoming Trump administration, serving as a partner in passing his agenda and confirming his nominations. 

Jeffries said Congress needs to focus on tackling the issues that matter to Americans, including lowering costs and improving peoples’ quality of life, saying “there are times to campaign and engage in the political process,” but “that time has come to an end.” Now, he said, the focus should be on solving problems for Americans. 

“America’s a resilient nation, and so we’re going to get through this political moment and continue to be the greatest country, in my view, in the history of the world,” he said. “But we have problems that we have to solve.”

While Democratic Rep. Seth Moulton said following the Democratic losses that the party spends “way too much time trying not to offend anyone” and called for a new approach from the party on the transgender issues, Jeffries said Tuesday that he “didn’t want to get ahead of the conversations we’re going to have collectively.” 

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House Minority Leader Hakeem Jeffires on “CBS Mornings,” Nov. 12, 2024.

CBS News


“There are 435 members of the House of Representatives, which means at the end of the day, that means there are 435 independent contractors who, at the end of the day, are most accountable — and should be —to the communities they represent,” Jeffries said. “We’ll have a responsibility as House Democrats to have that conversation about how to move forward.” 



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