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How long does credit card debt forgiveness take?
Erik Isakson
Debt settlement programs are centered around negotiations with your creditors, which are done in an attempt to get them to accept less money than you owe on your debt. During the process, part of the debt is settled and forgiven — which is why many call debt settlement a debt forgiveness program.
But while debt forgiveness can be effective, it can also take some time. After all, it’s unlikely that a creditor will forgive 100% of the amount you owe. Instead, these settlements typically result in a portion of what you owe being forgiven.
You’ll still have to pay off the remainder of your debt before your debt is fully settled, which may be tough to do immediately. So, how long does debt forgiveness take?
Tap into the relief you need with a credit card debt forgiveness program now.
How long does credit card debt forgiveness take?
As noted, debt forgiveness is generally the result of a debt relief service known as debt settlement. For example, say you sign up for a debt settlement service with $12,000 in credit card balances and the service is able to negotiate a 50% settlement with your lenders. In this case, your lenders will forgive half of the amount you owe, but you’ll still be required to pay $6,000.
Moreover, since debt settlement is typically a service for those who are struggling to make their minimum payments, chances are you won’t have $6,000 immediately available to settle your debts. It will likely take some time for you to be able to pay that amount. But how long?
According to Freedom Debt Relief, the entire debt relief process usually takes anywhere from 24 to 48 months. Here are the factors that play the biggest role in the time it could take to settle your debts:
The amount of money you owe
Debt settlement companies work to help you pay your debts off as quickly as possible. One of the most significant factors in doing so is the debt itself. It will generally take consumers longer to pay off $20,000 in credit card debt than it will take to pay off $10,000. The goal of these programs is to settle your debt for a portion of what you owe — but you can still expect to pay to settle larger debts, which can take some time.
Find out how quickly your debt could be forgiven today.
The payments you can afford to make
In most cases, you’re looking into credit card debt forgiveness because you’re having a difficult time making your credit card payments. The good news is that debt settlement companies usually consider this when they create your payment plan, which is aimed at getting you out of debt as quickly and affordably as possible. So, the amount of money you can afford to pay each month will play a role in the amount of time it takes to settle your debts.
Using the example above, you would be responsible for $6,000 in debt rather than $12,000. If you could afford to pay $300 per month, you could theoretically pay the settlement off in under two years. On the other hand, if you could only afford to pay $125 per month, it would take four years to settle your debt.
The company you work with
The company you work with to get your credit card debt forgiven also plays a role in how long it takes to settle your debts. Here’s why:
- Fees: “Debt settlement companies often charge fees for their services, which can eat into the savings you achieve through debt settlement,” says Jordan Mangaliman, CEO of Goldline Financial Services. “Additionally, creditors may also charge fees or penalties for settling your debts.” This can extend the time it takes to complete your settlement.
- Negotiations: Some debt settlement companies may be better at negotiations than others. The better the settlement deal is, the faster you’re likely to pay off your debt. So, you’ll probably pay your debts off faster when you work with a reputable debt relief company that has a history of successful negotiations than you would working with a less reputable provider.
Why you should enroll in debt relief now
When borrowers can’t afford their credit card minimum payments, they may, in some cases, give up on their debts and completely stop sending payments. That can be a mistake.
Here’s why you should seek debt relief rather than giving up altogether:
- Annoying calls: The debt collection process typically starts with phone calls and letters.
- Lawsuits: If your credit card debt goes unaddressed for too long, your lenders may take you to court in search of a judgment.
- Garnishments: If your creditors win a judgment, you could face bank account, paycheck and tax return garnishments.
- Property liens: Some creditors may even put a lien on your property until you pay your debt in full following a judgment.
These outcomes are typically avoidable. Reach out to a debt relief expert to discuss your options now if you’re having a hard time making your minimum payments.
The bottom line
Credit card debt forgiveness usually takes anywhere from two to four years on average. However, that time frame may vary depending on the amount of debt you owe, how much money you can afford to pay per month and the company you work with.
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California Gov. Gavin Newsom vetoed a bill Saturday that would have required new cars to beep at drivers if they exceed the speed limit in an effort to reduce traffic deaths.
California would have become the first to require such systems for all new cars, trucks and buses sold in the state starting in 2030. The bill would have mandated that vehicles beep at drivers when they exceed the speed limit by at least 10 mph.
The European Union has passed similar legislation to encourage drivers to slow down. California’s proposal would have provided exceptions for emergency vehicles, motorcycles and motorized scooters.
In explaining his veto, Newsom said federal law already dictates vehicle safety standards and adding California-specific requirements would create a patchwork of regulations.
The National Highway Traffic Safety “is also actively evaluating intelligent speed assistance systems, and imposing state-level mandates at this time risks disrupting these ongoing federal assessments,” the Democratic governor said.
Opponents, including automotive groups and the state Chamber of Commerce, said such regulations should be decided by the federal government, which earlier this year established new requirements for automatic emergency braking to curb traffic deaths. Republican lawmakers also said the proposal could make cars more expensive and distract drivers.
The legislation would have likely impacted all new car sales in the U.S., since the California market is so large that car manufacturers would likely just make all of their vehicles comply.
California often throws that weight around to influence national and even international policy. The state has set its own emission standards for cars for decades, rules that more than a dozen other states have also adopted. And when California announced it would eventually ban the sale of new gas-powered cars, major automakers soon followed with their own announcement to phase out fossil-fuel vehicles.
Democratic state Sen. Scott Wiener, who sponsored the bill, called the veto disappointing and a setback for street safety.
“California should have led on this crisis as Wisconsin did in passing the first seatbelt mandate in 1961,” Wiener said in a statement. “Instead, this veto resigns Californians to a completely unnecessary risk of fatality.”
The speeding alert technology, known as intelligent speed assistance, uses GPS to compare a vehicle’s pace with a dataset of posted limits. If the car is at least 10 mph over, the system emits a single, brief, visual and audio alert.
The proposal would have required the state to maintain a list of posted speed limits, and it’s likely that those would not include local roads or recent changes in speed limits, resulting in conflicts.
The technology has been used in the U.S. and Europe for years. Starting in July, the European Union will require all new cars to have the technology, although drivers would be able to turn it off. At least 18 manufacturers including Ford, BMW, Mercedes-Benz and Nissan, have already offered some form of speed limiters on some models sold in America, according to the National Transportation Safety Board.
The National Highway and Traffic Safety Administration estimates that 10% of all car crashes reported to police in 2021 were related to speeding. This was especially a problem in California, where 35% of traffic fatalities were speeding-related — the second highest in the country, according to a legislative analysis of the proposal.
Last year the NTSB recommended federal regulators require all new cars to alert drivers when they speed. Their recommendation came after a crash in January 2022, when a man with a history of speeding violations ran a red light at more than 100 mph and struck a minivan, killing himself and eight other people.
